International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)


The Effects of Locally-Generated Revenue (LGR) and Revenue Sharing Funds (RSF) on Regional Minimum Wages to Promote Human Development Index (HDI) in Banten Province

Author(s): TB. M. Ali Ridho Azhari, Asep Sumaryana, R. Widya Setiabudi Sumadinata, Nandang Alamsah Deliarnoor

This study aims to analyze the effects of Revenue Sharing Funds (RSF) and Locally-Generated Revenue (LGR) on the Human Development Index (HDI) through Regional Minimum Wages (RMW) in Banten province. The data used is panel data, namely a combination of time series data and cross-section data. Time series data are taken from 2014 to 2019 while cross-section data are taken from all districts/cities in Banten Province. The total data obtained are 48. The data analysis technique used the Structural Equation Model (SEM) with Partial Least Square (PLS). The results show that LGR has positive effects on RMW and HDI, while RSF has negative effects on RMW and HDI. RMW has positive effects on HDI.

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