PENGARUH KINERJA KEUANGAN DAERAH TERHADAP PERTUMBUHAN EKONOMI KABUPATEN/ KOTA DI PROVINSI JAWA TENGAH TAHUN 2013 – 2015

This study aims to determine how the influence of local financial performance by using the ratio of effectiveness, efficiency ratio, and financial independence of the region on economic growth in 30 districts / cities in Central Java Province in 2013-2015. Determination of the specified sample using purposive sampling method and hypothesis testing in this study was done by panel data regression analysis technique. The research results show that the economic growth of Central Java has fluctuated during the period 2013-2015. While the results of panel regression showed simultaneous research proves that the effectiveness, efficiency, regional financial independence, and regional financial dependence have a positive and significant influence on economic growth. Partial research proves that the variables of effectiveness and local financial independence have a significant positive effect. The variable of financial dependency has a significant negative effect, while the efficiency variable has a positive but not significant influence on economic growth in Central Java Province in 2013-2015