dc.description.abstract | Vector Auto Regression (VAR) is an analysis or statistic method which can be used to
predict time series variable and to analyst dynamic impact of disturbance factor in
the variable system. In addition, VAR analysis is very useful to assess the
interrelationship between economic variables. This research through the following
test phases: unit root test, test of hypothesis, Granger causality test, and form a
vector autoregresion model (VAR). The data used in this research is the GDP data
and budget data of South Sulawesi in the period 1985-2004. The research aims to
analyze the interrelationship between public expenditure and economic growth in
South Sulawesi. The result showed statistically significant in economic growth
(PDRB) influence public expenditure (APBD), however, not vice versa. Otherwise,
for the need of APBD prediction, the used of lag 4 was the optimum model based on
the causal relationship to PDRB. | en_US |