The Factor Determinants of Regional Origional Revenue in West Sumatra Province

Abstract

This study aims to determine the effect of Labor Force Participation Rate, Number of Motorized Vehicles, Number of Small and Medium Enterprises, number of tourist Visits, average per capita expenditure, Room Occupancy Rate, and Regional Original Revenue in 19 Cities and Regencies in West Sumatra in 2005-2018. The model used is the OLS method using panel data and using the statistical program e-views 10 for Windows. The results of the study showed either partially or simultaneously that: Labor Force Participation Rate, Number of Motorized Vehicles, Number of Small and Medium Enterprises, Number of Tourist Visits, Average per capita expenditure and Room Occupancy Rate to Regional Original Income are positive and significant. The largest contribution to Regional Original Revenue is Motorized Vehicles, while the lowest is the Hotel Room Occupancy Rate. The coefficient of determination or goodness of fit is 0.742869. The contribution of all independent variables in explaining the dependent variable is 74.29 percent. Other variables outside the research model explain the remaining 25.71 percent.