The Influence of Local Own Income and balanced Fund on HDI With Capital Expenditure as an Intervening Variable in Districts / Cities of Central Java (2019-2021)

ABSTRACT: This study aims to examine the effect of Regional Original Income and Balancing Funds on the Human Development Index with Capital Expenditure as an intervening variable. The population for this study is regencies/cities in Central Java from 2019 to 2021. Sampling was carried out using the purposive sampling method, based on the specified criteria a sample of 105 regencies/cities was obtained from 2019 to 2021. The data analysis technique used the classical assumption test and descriptive statistical analysis, classical assumption test, multiple linear regression analysis, Sobel test with SPSS 26. The results show that Local Own Income has an effect on the Human Development Index, Balancing Funds have an effect on the Human Development Index, Local Own Income has no effect on the Human Development Index , Balancing Funds have an effect on Capital Expenditures, Capital Expenditures have an effect on the Human Development Index, Capital Expenditures do not mediate Regional Original Income on the Human Development Index, Capital Expenditures do not mediate Balancing Funds on the Human Development Index.

Keywords -regional original income, balancing funds, capital expenditures, human development index