Factors Influencing Capital Expenditure

Abstract

The purpose of the current study is to describe and analyze the partial and simultaneous influence of Local Revenue, Revenue Sharing Fund, General Allocation Fund, and Specific Allocation Fund on capital expenditure in cities/municipalities in West Java. The research method used was descriptive analysis. The data collection technique was documentation where the researcher analyzed documents, transcripts and reports related to and supported the current study. The data used was secondary data time series from 2012-2014. The data analysis technique was panel regression analysis of data involving the combination of the time series and cross-sectional of data. The finding showed that the Local Revenue (LR), Revenue Sharing Fund (RSF), General Allocation Fund (GAF) and Specific Allocation Fund (SAF) had a simultaneously significant influence on the capital expenditure. Partially, the Local Revenue, Revenue Sharing Fund, and the General Allocation Fund had a significant influence on capital expenditure, while the Specific Allocation Fund did not have any significant impact on the capital expenditure.