The Effect of Household Consumption Expenditure and Investments on Economic Growth and Regional Generated Revenue in The Regency / City of Bali Province

ABSTRACT: The purpose of this study was to determine the effect of consumption and investment on economic growth and local generated revenue. This research was conducted in the regency / city of Bali Province, the type of data used was quantitative data, the data collection methods used were observation. The data analysis technique used is path analysis and sobel test. Based on the results of the analysis it was found that house hold consumption and investment expenditure had a positive and significant effect on economic growth. This shows that increasing household consumption and investment expenditure will increase economic growth. House hold consumption expenditure hasn’t positive effect on the local generated revenue. Investment has no effect on localgenerated revenue. Economic growth has a positive and significant effect on the local generated revenue.Consumption and investment have an indirect effect on the regional generated revenue through economic growth. Household consumption expenditures and investments become a reference to be able to increase economic growth and local generated revenue, so that it is suggested that the government be able to create as many jobs as possible so as to increase people’s income so that people can pay taxes and ultimately have an impact on increasing local generated revenue.

Keywords: consumption, investment, economic growth and local generated revenue