The Effect of Government Expenditure on Gross Regional Domestic Product

The purpose of this study is to determine the effect of government expenditure on the Gross Regional Domestic Product (GRDP) in South Sulawesi. Economic growth is defined as an increase in the production of goods and services in an economy, accompanied by an increase per capita and the improvement of societal welfare at both local and national levels. To measure economic growth in a specific region, the Gross Regional Domestic Product is used. This study uses secondary data from 2010 to 2020, encompassing GRDP at constant prices, Direct Expenditure, and Indirect Expenditure by type of expenditure, obtained from the South Sulawesi Central Statistics Agency. The data analysis technique employed is multiple linear regression analysis using SPSS version 29. The results indicate that Direct Expenditure has a positive but not significant effect on the GRDP of South Sulawesi, while Indirect Expenditure has a positive and significant effect on the GRDP of South Sulawesi. The Adjusted R-square value is 0,955 indicating that 95,5% of the variation in GRDP is explained by Direct and Indirect Expenditures, with the remaining 4,5% influenced by other factors outside the research model.