Analysis of the Influence of Regional Financial Independence, Capital Expenditure Levels, and Economic Growth on the Human Development Index of Lampung Province for the Period 2015–2022

Abstract

This study aims to analyze the influence of regional financial independence, capital expenditure levels, and economic growth on the Human Development Index (HDI) in Lampung Province for the period 2015–2022. This study uses a quantitative approach with an associative research type. The data used are secondary data sourced from the Central Statistics Agency (BPS), the Directorate General of Financial Balance (DJPK), and the Regional Government Financial Statements (LKPD). The sampling technique used saturated sampling involving 15 districts/cities in Lampung Province during the period 2015–2022. Data analysis was carried out using panel data regression. The results of the study showed that regional financial independence, capital expenditure levels, and economic growth had a positive and significant effect on HDI, respectively. These findings show that improving regional financial capacity, effective capital expenditure allocation, and economic growth can support improving the quality of human development through education, health, and decent living standards.