BELANJA MODAL, BARANG DAN JASA TERHADAP PENYERAPAN TENAGA KERJA DI PROVINSI KALIMANTAN UTARA
This study aims to analyze the effects of capital expenditure and expenditure on goods and services on labor absorption in North Kalimantan Province, both partially and simultaneously. A quantitative method was employed using secondary data on capital expenditure, expenditure on goods and services, and labor absorption across the regencies and municipality of North Kalimantan Province during the 2015-2024 period. The data were obtained from Statistics Indonesia (BPS) and the Directorate General of Fiscal Balance of the Ministry of Finance of the Republic of Indonesia. Panel data regression analysis was conducted using EViews 12, and the model selection procedure identified the Fixed Effects Model (FEM) as the most appropriate estimation model. The results show that, partially, capital expenditure has a negative but statistically insignificant effect on labor absorption. In contrast, expenditure on goods and services has a positive and statistically significant effect on labor absorption across the regencies and municipality of North Kalimantan Province. Simultaneously, capital expenditure and expenditure on goods and services exert a statistically significant effect on labor absorption. These findings reveal that expenditure on goods and services contributes more substantially to labor absorption than capital expenditure. Accordingly, local governments should optimize the allocation of regional expenditures in an effective, efficient, and targeted manner to promote labor opportunities and support sustainable regional economic development