Abstract
This study aims to determine whether Regional Original Income and Economic Growth have a significant effect on Capital Expenditure in Indonesia during the Digital Era in 2022. This study uses quantitative data methods and the data source is secondary data. The population in this study are all 34 provinces in Indonesia. Data analysis and testing consist of descriptive statistics, classical assumption test, multiple regression analysis, partial hypothesis testing (T-test), simultaneous hypothesis testing (F test), and coefficient of determination test. The results of this study indicate that Regional Original Income has a partially significant effect on Capital Expenditure with a calculated T count of 6,570 > T-table 2,037. Economic Growth has no partial effect on Capital Expenditure with a calculated T count of 0,293 < T-table 2,037. Regional Original Income and Economic Growth simultaneously have a significant effect on Capital Expenditure with a calculated F count of 21,602 > F-table 3,30 and a regression coefficient value of 58,2%.
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