KnE Social Sciences

ISSN: 2518-668X

The latest conference proceedings on humanities, arts and social sciences.

The Effect of Local Government Characteristics on GRDP in Indonesia during the Pandemic Period

Published date: Jul 31 2024

Journal Title: KnE Social Sciences

Issue title: The 3rd International Conference on Business, Economics, and Sustainability Science (BESS 2023)

Pages: 552–566

DOI: 10.18502/kss.v9i21.16761

Authors:

Dewi MasithahDepartment of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang

Farida Rahmawatifarida.rahmawati.fe@um.ac.idDepartment of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang

Abstract:

This research aims to analyze the influence of local government characteristics, specifically Gross Regional Domestic Product (GRDP), on Indonesia during the pandemic. Economic growth is a key component of the Sustainable Development Goals (SDGs), as outlined in point eight of the 17 SDG goals. The Covid-19 pandemic has significantly impacted local government administration, leading to a decrease in regional income in some regions of Indonesia. This research employs a quantitative approach, utilizing multiple linear regression analysis for the analysis. The results reveal that the variables of area size and the number of Regional Apparatus Organizations (OPD) do not have a significant impact on economic growth in Indonesia. In contrast, the variable of Regional Original Income (PAD) demonstrates a significant influence on Indonesia’s economic growth. Moreover, when considered simultaneously, the area size, the number of OPD, and PAD collectively exert a significant impact on the economic growth in Indonesia during the pandemic. These findings suggest that local governments should allocate greater efforts and resources to foster economic growth, recognizing it as a crucial element for achieving the SDGs in Indonesia.

Keywords: economic growth, local government characteristics, Sustainable Development Goals (SDGs)

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