Study of Social Welfare based on Regional Fiscal Capacity and Economic Growth of Regencies/Cities in Kalimantan
Muzdalifah Muzdalifah

Economic Development, Faculty of Economics and Business, Lambung Mangkurat University, Banjarmasin, Indonesia

Abstract

The dependence of regions on transfer funds that occurred in many regencies/cities in Indonesia also occurred in Kalimantan, the small regional, Independence in regional fiscal low capacity, weakened the region^s ability amidst the global uncertainty, the decline in commodity prices on the global market and this pandemic reduced the regional economy on the island of Kalimantan. The Purpose in this research to understand what are the impact of fiscal capacity and regional economic growth on improving the welfare of the community in districts / cities in Kalimantan. The methods uses in research are Klassen typology and Panel Data Regression using SPSS and Eviews software. The research describe Scarter Plot IKFD and Growth, There are only 6 Regencies/ Cities that are in quadrant 1, the rest are mostly in quadrant 3 and 4. Scarter Plot IKFD and IPM, There are only 11 Regencies/Cities that are in quadrant 1, the rest are mostly in quadrant 3 and 4. The best model adalah Fixed effect model with the Chow and Hausman test, the simultaneously all independent variables (IKFD and Growth) affect the dependent variable (HDI) and Partially it is known that only the IKFD variable has a significant effect on the level of welfare in the Regency / City with a negative relationship, The coefficient of determination (R2) is 88.83%, which means that the proportion of variance in the predictable welfare variable from the IKFD variable and growth is 88.83 percent, the rest is explained by other variables outside the model.

Keywords: IKFD, Economic Growth, Social Welfare

Topic: Economics