Abstract
This study aims to determine the Capital Expenditure and Income Original Region is considered to have a significantly positive effect on the increase in income per capita in the Government of North Sumatera Province and West Java Province. The method of research in this thesis is by using a causal research design, with a sample of 25 districts/cities in North Sumatera Province and West Java Province. This study was conducted for the period 2012-2015. The type of data used is secondary data. The method of analysis used in this research is SEM method using software AMOS. The result of this hypothesis shows that simultaneously both independent variables significantly influence to increase of income per capita.
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