Analysis of the Capability, Effectiveness, and Independence of Regional Financial on Gross Regional Domestic Products and Poverty in East Kalimantan

Abstract

The purpose of this research is to examine and identify the direct impact of regional financial capacity, efficiency, and autonomy on the gross regional domestic product in East Kalimantan. Analyze the immediate impact of the region's financial capacity, efficacy, and independence on poverty in East Kalimantan. Examine the direct impact of the gross regional domestic product on poverty rates in East Kalimantan. analyze and evaluate how East Kalimantan's gross regional domestic product mediates the indirect effects of a region's financial capacity, effectiveness, and independence on poverty. This study employs a descriptive correlational design with a cross-sectional method. Panel data were collected from ten districts and cities between 2018 and 2022 using a time series approach. Methods for gathering data through the evaluation of literary works. Data analysis using route analysis, which incorporates multiple linear regression, in the context of economic modeling. The study's findings indicate that the region's financial capabilities have a direct and considerable impact on the Gross Regional Domestic Product (GRDP) in East Kalimantan. On the other hand, the impact of regional financial effectiveness on GRDP in East Kalimantan is both positive and statistically insignificant. Similarly, regional financial independence has a direct but statistically minor impact on East Kalimantan's Gross Regional Domestic Product (GRDP). The number of financial resources and the effectiveness of financial operations at the regional level have a direct and considerable impact on poverty rates in East Kalimantan. In contrast, establishing financial independence in a specific area has a big and detrimental impact on poverty in East Kalimantan. The Gross Regional Domestic Product (GRDP) has a substantial impact on poverty levels in East Kalimantan. The competence, effectiveness, and independence of regional finances have an impact on the Gross Regional Domestic Product, which in turn affects the relationship between regional finances and poverty in East Kalimantan.