Analysis of the Influence of Local Original Income (PAD) and Regional Competitiveness on Regional Financial Independence in Banten Province, Indonesia

Pramudi Harsono, Istiqomah Istiqomah, Diah Setyorini Gunawan


This research aims to evaluate how Local Original Income (PAD) and regional competitiveness influence regional financial independence in Banten Province, Indonesia. Regional financial independence is an important indicator in assessing the ability of regional governments to fund development programs and projects without relying on external resources. The research results also specifically show that the level of PAD contribution has a significant positive influence on regional financial independence, indicating that increasing Regional Original Income can increase regional financial independence. Apart from that, Regional Competitiveness also has a positive and significant impact on regional financial independence, indicating that increasing efficiency in managing regional Competitiveness can increase regional financial independence. Overall, this research shows that both PAD contribution and Regional Competitiveness have a significant influence on regional financial independence. Therefore, this research makes an important contribution to understanding the factors that influence regional financial independence in districts/cities in Banten Province. The results of this research can be a basis for improving policies and making better decisions to increase regional financial independence, which in turn will support sustainable development in this region.

Keywords: Local l Original Income (PAD),  Regional Competitiveness , Regional Financial Independence

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