| dc.description.abstract | This research aims to examine and analyze the impact of regional fiscal policy on economic growth in North Sumatera. The detection of fiscal illusions (flypaper effect) in policies carried out by district/municipality governments in North Sumatera is also carried out in this research. This research uses quantitative data analysis, in which the data provides an overview of events using numbers, the results of which will then be compared with relevant theories and empirical evidence from previous studies. The data used in this research is in the form of panel data (pool data). The result of this research indicates that in equation I, PAD (Regional Original Income) has a positive and significant effect on Regional Expenditure, DAU (General Allocation Fund) has a positive and significant effect on Regional Expenditure, Special Allocation Fund has a positive and significant effect on Regional Expenditure and so on. Simultaneously, Local Own Revenue, General Allocation Funds, and Special Allocation Funds have a positive and significant effect on Regional Expenditures in North Sumatera. For equation II, direct Regional Original Income has a positive and significant effect on economic growth peroxided by Gross Regional Domestic Product, Regional Expenditure has a positive and significant effect on economic growth, Regional Original Income and Regional Expenditures simultaneously have a positive and significant effect on district economic growth/city in North Sumatera, and indirectly Regional Own Revenue has a positive and significant effect on economic growth through regional spending. In addition, it is also known that there is a fiscal illusion (Flypaper effect) in the fiscal policies of district/municipality governments in North Sumatera. | en_US |
