The Influence of Regional Original Revenue (PAD), Investment, and Capital Expenditure on Economic Growth in Bali Province, with Tourism Levels as a Moderating Variable

Abstract

This study examines the influence of Regional Original Revenue (PAD), investment, and capital expenditure on economic growth. Two test models are used: an analysis of the influence of the independent variables on economic growth without moderation, and an analysis of the influence of the independent variables on economic growth using the moderating variable, namely the level of tourism. The practical benefit of this research is to provide a reference for regency and city governments in Bali Province to optimize the collection of Locally-Generated Revenue (PAD) and ensure targeted allocations for investment and capital expenditure, thereby boosting local economic growth. The research method used is quantitative, employing multiple linear regression analysis with panel data, a combination of time-series and cross-sectional data, and analyzed using SPSS version 31. A sample of 45 units was obtained, consisting of 8 regencies and 1 city in Bali Province, and the time period taken was 2020-2024 (5 years). The results show that Regional Original Revenue (PAD), investment, and capital expenditure have a positive and significant effect on economic growth. The level of tourism moderates the effect of investment on economic growth, but does not moderate the effect of Regional Original Revenue (PAD) and capital expenditure on economic growth.