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

Abstrak

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