Daftar Isi:
  • This study aims to examine the relationship and influence of Regional Original Income (PAD), Balancing Funds on Economic Growth in the City of Palembang in 1994-2017. The data analysis technique used was descriptive analysis and quantitative analysis which included the Granger Causality Test and the Ordinary Least Square (OLS) method. The results of this study are (1) There is a one-way causality relationship between Regional Original Income (PAD) and Economic Growth (2) There is a two-way causality relationship between the Balancing Fund and Economic Growth; (3) Regional Original Income (PAD) has a positive and significant effect on Economic Growth (4) Balancing Funds have a negative and significant effect on Economic Growth. Overall, all independent variables, namely Regional Original Revenue and Balancing Fund, are able to explain 23.42 percent of the variation in Economic Growth.