Error Correction Model Approach for Analysis of Original Regional Income in West Sumatra

Abstract

In this research, an error correction model approach is used, namely looking at long-term and short-term
relationships. Meanwhile, Original Regional Income (PAD) is all regional income originating from original regional
economic sources. Sources of Original Regional Income according to Law Number 33 of 2004 Chapter V Article 6
consist of Regional Taxes, Regional Levies, Separated Regional Wealth Management Results and Other Legal PAD.
because this approach uses long-term and short-term relationships, it is known that only variables x1 and x3 have a
long-term relationship and variables x1 and x3 have a short-term relationship. so it can be concluded that not all
independent variables have a connection with the dependent variable