The Effect of Gross Regional Domestic Product of the Manufacturing Industry Sector, Manufacturing Industry Labor, and Population on Local Own-Source Revenue (PAD) in Tuban Regency

Nanda Trista Pramudiya; Kiki Asmara

doi:10.63922/ijebir.v5i05.6047

Nanda Trista Pramudiya Development Economics Study Program, UPN Veteran Jawa Timur
Kiki Asmara Development Economics Study Program, UPN Veteran Jawa Timur

DOI: https://doi.org/10.63922/ijebir.v5i05.6047

Keywords: PAD, Manufacturing Industry GRDP, Labor, Population

Abstract

The industrial sector plays a strategic role in driving economic growth and increasing regional revenue through Local Own-Source Revenue (PAD). Tuban Regency, as one of the industrial areas in East Java, records a significant contribution from the manufacturing industry sector to the regional economy, yet the increase in industrial activity has not been fully proportional to PAD growth. This study examines the influence of manufacturing industry GRDP, manufacturing industry labor, and population on PAD in Tuban Regency using secondary data in the form of annual time series from 2006 to 2025 obtained from the Central Bureau of Statistics (BPS) of Tuban Regency. The analytical method used is multiple linear regression with the Ordinary Least Square (OLS) approach and supported by classical assumption tests including normality, multicollinearity, heteroscedasticity, and autocorrelation tests. The results show that simultaneously, the three independent variables have a significant effect on PAD in Tuban Regency. Partially, manufacturing industry GRDP has a positive and significant effect, manufacturing industry labor has a positive but insignificant effect, while population has a negative and significant effect on PAD.

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