Christine Tambunan, Jakaria Amin


This study is to examine and to analyze the impact of State Budget Expenditure on the Level of Economic Activity in Indonesia. Using the Autoregressive-Distributed Lag (ARDL) method. And using data from 2008-2017. The result of this empirical study is that in the long run, state budget expenditure, consisting of Employee Expenditure, Special Allocation Fund (DAK) and General Allocation Fund (DAU,) has a significant positive effect on Level of Economic Activity. On the contrary, Capital Expenditure has a significant negative impact on growth. While Goods Expenditure shows a negative effect, though it was not statistically significant.


State Budget Expenditure; Economic Activity; ARDL

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DOI: http://dx.doi.org/10.25105/me.v27i1.5303


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