THE INFLUENCE OF FINANCIAL PERFORMANCE ON ECONOMIC GROWTH AND INCOME DISPARITY IN INDONESIA

Authors

  • Jamaliah Jamaliah Universitas Tanjungpura, Indonesia

DOI:

https://doi.org/10.29040/ijebar.v10i3.20346

Abstract

This study aims to determine and test the effect of the regional financial effectiveness ratio and the regional financial efficiency ratio on economic growth and income disparity in Indonesia. This research is quantitative and descriptive analysis using secondary data obtained from the publication of the Central Statistics Agency (BPS) in the form of panel data consisting of a combination of cross-section data, namely in 34 provinces in Indonesia and time series data from 2020 - 2024. The analysis method in this study uses multiple linear regression tests with the help of the Eviews 12 analysis tool. The results of the study partially indicate that regional financial effectiveness has a positive and significant effect on economic growth, while regional financial efficiency has a negative and insignificant effect on economic growth. In addition, regional financial effectiveness and regional financial efficiency have a positive and insignificant effect on income disparity. Simultaneously, regional financial effectiveness and regional financial efficiency have a significant effect on economic growth in Indonesia, while regional financial effectiveness and regional financial efficiency have no effect on income disparity in Indonesia.

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Published

2026-09-29

How to Cite

Jamaliah, J. (2026). THE INFLUENCE OF FINANCIAL PERFORMANCE ON ECONOMIC GROWTH AND INCOME DISPARITY IN INDONESIA . International Journal of Economics, Business and Accounting Research (IJEBAR), 10(3). https://doi.org/10.29040/ijebar.v10i3.20346

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