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Investigating the Impact of Village Funds, Village Expenditures, and the Village Development Index on Economic Growth in Indonesia

In: Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024)

Author

Listed:
  • Nurul Izzah

    (Doctoral Program Ekonomi Syariah FEBI UIN Sumatera)

Abstract

The objective of this study is to examine the impact of village funding, village expenditures, and the Village Development Index (VDI) on Indonesia’s economic growth. Panel data encompassing 33 provinces between 2018 and 2022 was the data used. The panel data regression approach is utilized for data analysis, and the fixed effect model is the model selected. The results of the analysis show that village funds, village expenditure and the Village Development Index (VDI) simultaneously influence economic growth in Indonesia. Meanwhile, partially village funds have a significant but negative effect on economic growth in Indonesia. Indonesia’s economic growth is significantly and favorably impacted by village expenditures and the Village Development Index (VDI). The research’s implications highlight the importance of improving village fund management, implementing village spending programs that can support regional development and independence to be more effective in supporting economic growth.

Suggested Citation

  • Nurul Izzah, 2024. "Investigating the Impact of Village Funds, Village Expenditures, and the Village Development Index on Economic Growth in Indonesia," Advances in Economics, Business and Management Research, in: Echo Perdana Kusumah & Yanto Yanto (ed.), Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024), pages 12-19, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-614-7_3
    DOI: 10.2991/978-94-6463-614-7_3
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