The Influence of Labor, Regional Original Income and Capital Expenditures on Economic Growth with Local Taxes as intervening variables (districts/cities in North Sumatra Province 2016 – 2019)

Abstract

Economic growth is one of the determining factors for success in economic development. If economic growth increases, it means that there is an increase in the production capacity of goods and services in an area so that in theory this increase indicates an expansion in production activities which then increases employment in various economic sectors.  This study aims to find out how economic growth in regencies or cities in North Sumatra province from 2016 to 2019 with the variables tested include Labor, Regional Original Income and Capital Expenditures on Economic Growth. This research involves how to graph economic growth during 2016-2019. This study uses secondary data through a documentation system with quantitative data analysis techniques processed with the SPSS version 25 program, namely the t test and the coefficient of determination (R). The samples used in this study were 33 regencies/cities in North Sumatra Province. The results obtained in this study indicate: 1) Labor has an impact and is significant on economic growth, 2) Regional Original Income has an effect and is significant on economic growth, 3 ) Capital expenditure has an impact and is significant on economic growth, 4) Labor has an impact and is significant on regional taxes, 5) Capital expenditure has an impact and is significant on regional taxes, 6) Local Original Income has an impact and is significant on regional taxes, 7) Labor has an impact and significant to regional taxes and economic growth, 8) Regional Original Income has an impact and is significant to local taxes and economic growth, 9) Capital expenditure has an impact and is significant to regional taxes, 9) Economic growth has an impact and is significant to regional taxes.