Analysis of Economic Performance Determination in Supporting Community Welfare of District/City in Bali Province

Abstract

The purpose of economic development is aimed to improve the community welfare. To realize the welfare community life, the government of Bali Province has implemented several effort through the work program with supported the existing budget. From the literature studies known that the financial performance, capital expenditure and the economic performance has influenced on the community welfare. The purpose of this research is analysis (1) the effect of financial performance and capital expenditure on the economic performance; (2) the effect of financial performance, capital expenditure and economic performance on the community welfare; and (3) analysis of the non-direct effect of financial performance and the capital expenditure on the community welfare through the economic performance on the District/city of Bali Province. This research is using panel data which are the combination between data of cross section which consists of 9 District with the data of time series 2010-2019. The data that used in this research is secondary data which is in the form of data which obtained from the financial data of the district/city of Bali province. The data managing and analysis is implemented with PLS Smart Software. The results and data analysis shows that (1) financial performance and capital expenditure has positive and significant influenced on the economic performance; (2) capital expenditure and economic performance has positive and significant influenced on the community welfare but the financial performance is not significant; and (3) financial performance is indirectly positive and significant influenced on the community welfare through the economic performance while the capital expenditure is not significant. The financial performance is able to improve the economic performance but unable to increase the community welfare, the financial performance holds the important and financial performance will be optimally on the community welfare if mediated by the economic performance on district/city of Bali Province.