The impact of capital expenditure of agricultural sector on economic performance: case in North Kalimantan Province, Indonesia

Adriansyah Didi, Setiawan Budi, Hanani Nuhfil and Syafrial S.
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Adriansyah Didi: University of Brawijaya
Setiawan Budi: University of Brawijaya
Hanani Nuhfil: University of Brawijaya
Syafrial S.: University of Brawijaya

Russian Journal of Agricultural and Socio-Economic Sciences, 2016, vol. 60, issue 12, 18-25

Abstract: The aim of this research is to determine the impact of capital expenditure of agricultural sector on the economic performance in North Kalimantan Province, Indonesia. This research uses panel data which combines time series data of 2004-2013 and cross section data of five regencies/cities in North Kalimantan Province, Indonesia. This research uses econometric model approach namely simultaneous equations models which consist of two identity equations and six structural equations. From the analysis it can be concluded that the capital expenditure of agricultural sector have a positive impact and it is significant on the gross regional domestic product of agricultural sector, where every increase of one percent of capital expenditure of agricultural sector will increase the gross regional domestic product of agricultural sector of 42.86%. The capital expenditure of agricultural sector have a positive impact simultaneously on gross regional domestic product, consumption, investment and export regional.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:scn:031261:16967660

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