The effect of investment, government expenditure and economic growth on community welfare

ABSTRACT: Welfare is a reflection of the development success in an area which can be measured with humandevelopment index (HDI). In reality, there has never been an equal distribution of the welfare of the people,including in Bali Province, this will not be separated from the influence of investment, government expenditureand economic growth in the area. Realization of investment in each region that is not evenly distributed and theallocation of government expenditure that is not well targeted has resulted in disparities in welfare betweendistricts / cities. This study aims to analyze the effect of investment, government expenditure and economicgrowth simultaneously and partially on people’s welfare. The data used in this study are secondary data from2014-2019 which were obtained from the Central Bureau of Statistics and the Directorate General of FiscalBalance. The method of collection was carried out by means of non-participant observation, then the data wasprocessed using multiple linear regression analysis techniques. The test results with SPSS show that investment,government expenditure, and economic growth simultaneously have a significant effect on people’s welfare.Government expenditure and economic growth partially have a positive and significant effect on people’swelfare. Meanwhile, investment partially has a positive but insignificant effect on people’s welfare. Based on theresults of the research, it can be suggested that the government can improve regulations related to the ease oflicensing and equitable distribution of infrastructure development in each district/city. Optimizing theexpenditure function in the fields of human development such as health and education so that the benefits can befelt directly by the community.

Keywords – community welfare, investment, economic growth, government spending.