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Quantitative analysis reveals significant influence of regional revenue and capital expenditure on financial performance, impacting economic growth.
The purpose of this research is to obtain an explanation of the influence of regional revenue and capital expenditure on regional financial performance and its impact on economic growth. The research method used is quantitative with hypothesis test using path analysis, Research results show that the influence of regional revenue and capital expenditure on regional financial performance is large and significant. similarly, the impact of regional financial performance on economic growth is very large and significant, therefore regional revenue, particularly original regional income must continue to be boosted through various intensification and extensification programs that can increase regional revenue as well as capital expenditures that can increase improve services to the community, so the community more productive in living their life and can participate in implementing regional development. with a productive community, economic growth will increase, which will improve community welfare. The conclusion of this research is that regional revenue and capital expenditure have a large influence, that is 74.30%, on regional financial performance, while the influence of financial performance on economic growth is very large, that is 81.00%.
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Maryani et al. (2025) studied this question.
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