The Influence of Capital Expenditure and Natural Resource Potential on Regional Development the Mediating Role of Economic Growth in Konawe Regency, Southeast Sulawesi Province
Keywords:
Capital Expenditure, Economic Growth, Natural Resource Potential, Regional Development, Regional EconomicsAbstract
This study aims to analyze the influence of capital expenditure and natural resource potential on regional development,
with economic growth serving as a mediating variable in Konawe Regency, Southeast Sulawesi Province. This research
employs a quantitative approach using primary data collected from 312 respondents consisting of local government
officials, community leaders, and stakeholders involved in regional development planning and implementation. The
sampling technique used was proportional random sampling, and the data were analyzed using Structural Equation
Modeling (SEM). The results indicate that capital expenditure has a positive and significant effect on economic growth
and regional development. Natural resource potential also has a positive and significant impact on economic growth
and directly enhances regional development. Furthermore, economic growth has a positive and significant effect on
regional development. The mediation analysis demonstrates that economic growth significantly mediates the
relationship between capital expenditure and regional development, as well as between natural resource potential and
regional development. These findings suggest that optimizing capital expenditure allocation and effectively managing
natural resource potential are essential strategies to stimulate economic growth and accelerate regional development.
This study contributes to the literature on regional economics by confirming the mediating role of economic growth in
strengthening the relationship between fiscal policy, resource potential, and regional development performance.
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Copyright (c) 2026 International Association of Management and Human Resource Development
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
