PENGARUH RASIO KINERJA KEUANGAN TERHADAP PERTUMBUHAN EKONOMI DI KABUPATEN BANYUWANGI

Local government performance assessment is essential to provide direction and guidance relating to a predetermined plan. With the performance evaluation, it’s expected that local government will work even better, transparent and accountable. Evaluation of regional capabilities can combine indicators of input, output, outcome and impact (Act No. 32 of 2004).Performance assessment relating to the budget may include assessment using ratios between components in local government financial reports. The purpose of this study is to determine (whether or not) there is influence of the financial performance of local government to economic growth. The research methodology used is descriptive analysis method and statistical analysis methods. The data used are secondary data with local government financial reports in 2004-2011 that are used as the sample. Hypothesis testing is performed using the F test and t test, with a significance level (α) of 5%. Data analysis using statistical data processing software SPSS 15:00 for windows. The regression analysis of this study showed that, 1) Degree of decentralization does not affect the economic growth in Banyuwangi in the period 2004-2011. 2) Financial dependence does not affect the economic growth in Banyuwangi in the period 2004-2011. 3) Independence ratio effects on economic growth in Banyuwangi in the period 2004-2011. 4) Effectiveness ratio effects on economic growth in Banyuwangi in the period 2004-2011. Keywords: Degree of Decentralization, Financial Dependence, Independence Ratio, effectiveness, Ratio and Economic Growt