Analysis of the effects of capital expenditure and supply chain on economic growth and their implications on the community welfare of districts and cities in central Kalimantan province

Abstract

This study aims to examine the relationships between capital expenditure, supply chain activities, economic growth, and community welfare in the districts and cities of Central Kalimantan Province. The study analyzes the original sample data from 2014 to 2022 using a path analysis approach. The findings reveal significant positive relationships between capital expenditure, economic growth, and community welfare. However, the hypothesized positive relationships between supply chain activities and economic growth, supply chain activities and community welfare, and economic growth and community welfare are not supported. Moreover, the mediating roles of economic growth in the relationships between capital expenditure and community welfare and supply chain activities and community welfare are not confirmed. Theoretical implications highlight the importance of strategic capital expenditure in driving economic growth and enhancing community welfare. Practically, the study guides policymakers and development planners to allocate resources effectively for sustainable and balanced economic expansion. The study has limitations, including focusing on direct relationships and the specificity of Central Kalimantan Province. Future research could include external factors, apply cross-regional analyses, and utilize qualitative approaches to gain deeper insights. Additionally, spatial analyses could enhance understanding of geographic impacts. The novelty of this research lies in its comprehensive exploration of the interplay between capital expenditure, supply chain activities, economic growth, and community welfare in the context of Central Kalimantan Province. By shedding light on the intricate dynamics between these variables, this study contributes to the existing literature on regional development and public policy while offering insights for informed decision-making and sustainable development practices.

Exploring the Nexus between Regional Fiscal Capacity and the Convergence of Inclusive Economic Development

“…Moreover, the finding that the ratio of direct spending contributes to the convergence of inclusive economic development (Table 3) aligns with the theory that direct spending, particularly in sectors such as health, education and other basic services, can help reduce disparities among regions (Gratia & Nugroho, 2020;Gulo et al, 2017;Yasni & Yulianto, 2020;Miar et al, 2024). Direct resource allocation for inclusive services and programmes can accelerate development in lagging regions.…”

Indonesia Strategy in Increasing Economic Cooperation in African Countries

“…Pertumbuhan ekonomi mengacu pada perannya dalam mempengaruhi kekuatan atau arah hubungan antara dua variabel lainnya. Sebagai mediator, pertumbuhan ekonomi tidak secara langsung menimbulkan efek, melainkan berinteraksi dengan faktorfaktor lain untuk memodifikasi hubungan di antara mereka (Miar et al, 2024). Namun, pada tahun 2023 nilai ekspor Indonesia di Afrika, mengalami sedikit penurun sekitar 8.55% dari total 7.5$ US juta pada tahun 2022 dan menjadi 6.8$ US juta pada tahun 2023.…”