Capital Expenditure Determinants with Economic Growth as a Moderator in Regency and Municipal Government in South Kalimantan

The purpose of this study is to test empirically how variables of PAD, DBH, DAU, DAK, Goods and Services Expenditure (BBJ), Personnel Expenditure (BPEG), affect the capital expenditure pattern with economic growth (PDRB) as a moderator on regency and municipal government in South Kalimantan. From the tests conducted on 65-panel data, it shows that this research model can be used to predict the factors influencing the allocation of capital expenditure. Even if there is still wide open possibility of other influential variables that have not been included in this model. Simultaneously, PAD, DBH, DAU, DAK, BBJ, BPEG, PDRB have a significant effect on the allocation of capital expenditure, but partially the significance and direction of each influence vary. Partially, BBJ (goods and services expenditure) has a significant effect on the allocation of capital expenditure, while BPEG (personnel expenditure) has a negative effect on the allocation of capital expenditure. The higher the personnel expenditure, the lower the opportunity of capital expenditure allocation, it shows that BPEG is a determinant of efficiency in the use of regional resources. The economic growth moderation variables proxied by PDRB in this study empirically succeeded in moderating the effect of DAK on Capital Expenditure but not significantly.