The Effect of Government Expenditure on Gross Regional Domestic Product (GRDP) in Bengkulu Province, 2010–2019 and 2023
Abstract
This study aims to analyze the development of government expenditure and Gross Regional Domestic Product (GRDP), as well as to examine the effect of government expenditure on GRDP in Bengkulu Province during the period 2010–2019 and 2023. This research employs a quantitative approach using descriptive and associative methods. The data used are secondary time series data obtained from the Central Bureau of Statistics (BPS) and the Directorate General of Treasury (DJPB). The analytical method applied is simple linear regression, supported by classical assumption tests including normality, heteroscedasticity, and autocorrelation tests. The results indicate that government expenditure in Bengkulu Province shows an increasing trend despite some fluctuations in certain periods. Meanwhile, GRDP also demonstrates a positive growth trend throughout the observation period. Based on the regression analysis, government expenditure has a positive and significant effect on GRDP, with a regression coefficient value of 6.817819. The t-test result shows a probability value of 0.0001, which is lower than the significance level of 0.05, indicating that the hypothesis is accepted. The coefficient of determination (R²) is 0.849253, meaning that 84.93% of the variation in GRDP can be explained by government expenditure. In conclusion, government expenditure plays a significant role in promoting regional economic growth in Bengkulu Province. Therefore, local governments are expected to optimize public expenditure allocation effectively and productively to enhance regional economic performance.
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