Analysis of Factors Affecting Regional Original Revenue in Yogyakarta Special Regional Province 2016-2020

Abstract

This study examined several factors affecting Regional Original Revenue with several macroeconomic variables as independent variables, covering inflation, population density, number of hotels, and number of tourists visiting the regencies/cities. This research utilized secondary data from five regencies/cities in the Special Region of Yogyakarta (DIY) for the period 2016-2020 and panel data regression with the Pooled Least Square (PLS), Fixed Effect Model (FEM), and Random Effect Model (REM) as the analytical methods. The estimation steps employed the Chow and the Hausman tests. The study results unveiled that inflation and the number of hotels had a positive and significant effect on Regional Original Revenue in DIY. Meanwhile, population density and the number of tourists had no significant effect on Regional Original Revenue in DIY. This research is the first study to examine the effect of Regional Original Revenue in 2016-2020 at Universitas Muhammadiyah Surakarta.