ANALISIS PERAN BELANJA MODAL DAN INVESTASI SWASTA TERHADAP PERTUMBUHAN EKONOMI SERTA DAMPAKNYA PADA KESEJAHTERAAN MASYARAKAT

The purpose of economic development is to improve public welfare. Many factors influence
economic growth, including sustainable development. This study is aimed to analyze the impact
of capital expenditure and private investment on economic growth of the regency/municipal
during the period of 2010-2015 as well as the impact of economic growth on public welfare
proxied by the human development index figures. Using WarpPLS, used purposive sampling
methode, testing is done for the 415 autonomous regional and 93 autonomous municipals
in Indonesia using time series data 2010-015. The results of this study shows that capital
expenditure positively effect economic growth as well as private investment has positive effect
on economic growth. Furthermore, the economic growth has been proven to improve public
walfare.

Keywords: capital expenditure, private investment, economic growth, public welfare