GOVERNMENT EXPENDITURES AND ECONOMIC GROWTH IN ACEH PROVINCE: AUTOREGRESSIVE DISTRIBUTED LAG APPROACH

This study examined the effect of direct and indirect expenditures on economic growth and used time-series data from 1986 to 2020. The data analysis method used was Autoregressive (AR) and Distributed Lag (DL) or ARDL. The results indicated that in the short term, economic growth lag 1 significantly and positively affected economic growth in Aceh province, direct expenditures (development expenditure) in lag 1 significantly and positively affected economic growth, and indirect (routine) expenditures on lag 2 significantly and positively affected economic growth. In the long term, both direct and indirect expenditures significantly and positively influenced economic growth.