The Effect of Capital Expenditure and Investment on Regional Generated Revenue and Economic Growth of Bali Province

ABSTRACT: The purpose of this study are 1) to analyze the effect of capital expenditure and investment on the regional generated revenue of regencies/cities in Bali Province. 2) to analyze the effect of capital expenditure, investment, and regional generated revenue on the economic growth of regencies/cities in Bali Province. 3) to analyze the role ofregional generated revenuein mediating the effect of capital expenditure and investment on the economic growth of the regencies/cities in Bali Province. The data in this study is in the form of panel data, by nine regencies/cities of Bali Province in the year of 2013-2017. The data collection of this research was carried out by the non-participant observation method. The data analysis technique used to solve the problem in this study is the path analysis technique. The analysis shows that capital expenditure and investment have a positive and significant effect on regional generated revenue. Capital expenditure has a negative and significant effect on economic growth while investment and regional generated revenue have a positive and significant effect on economic growth and regional generated revenue is a mediating variable of the effect of capital expenditure and investment on economic growth.
KEYWORDS: Capital expenditure, investment, regional generated revenue, economic growth