Implementation Of Regional Autonomy On Community Welfare Through Economic Growth And Capital Expenditures As Mediation Variables

Abstract

More than two decades of the regional autonomy system have been held in Indonesia since 2001 to be exact. The focus of the implementation of regional autonomy and fiscal decentralization is centered on districts/cities and villages with the consideration that the grassroots of development starts from the smallest government area so that development results are overall. can be enjoyed by all levels of society. This research was conducted with the aim of evaluating the implementation of the autonomous system in district and city local governments in Indonesia, in an effort to improve people's welfare, with capital expenditure and economic growth as intervening variables. The population in this study used all regencies and cities in Indonesia with a total of 508 samples consisting of 415 regencies and 93 cities with an observation period of 2015-2021. The results of the study show that through capital expenditure, the regional autonomy system has a significant positive effect on people's welfare. Mean while, through economic growth, the regional autonomy system has a significant negative effect on people's welfare.