The Moderating Role of Institutional Quality on the Effect of Household Consumption and Government Expenditure on Economic Growth in Indonesia

  • Fajar Ardiansyah UIN Mahmud Yunus Batusangkar, Indonesia
  • Kefvin Melwani UIN Mahmud Yunus Batusangkar, Indonesia
  • Melly Firdawinata Universitas Ibnu Sina, Batam, Indonesia
DOI: https://doi.org/10.54783/ijsoc.v8i2.1635
Keywords: Household Consumption, Government Expenditure, Economic Growth, and Institutional Quality.

Abstract

The magnitude of household consumption and government expenditure does not guarantee accelerated economic growth without being supported by sound institutional quality, particularly corruption control, which remains a major challenge in Indonesia's governance. This study aims to analyze the moderating role of institutional quality in the effect of household consumption and government expenditure on economic growth in Indonesia. This study employs a quantitative explanatory approach using time series data for the period 2006–2025, obtained from the official World Bank website. The analysis techniques used are multiple regression and Moderated Regression Analysis (MRA). The results show that household consumption (β = 3.489; sig = 0.017) and government expenditure (β = 1.379; sig = 0.015) have a positive and significant effect on economic growth. Institutional quality is able to moderate and strengthen the effect of household consumption (β = 9.100; sig = 0.018) and government expenditure (β = 1.890; sig = 0.013) on economic growth, with an R² of 0.842. These findings confirm that corruption control and improved governance are key to optimizing the effectiveness of fiscal policy and domestic consumption on sustainable economic growth.

References

1. Patel, A., & Romero, D. (2024). Hardening MFA Against Prompt Bombing: Telemetry-Driven Rules. Journal of Defensive Security, 12(3), 77–95.
2. Kurniawan, R., & Li, M. (2023). Detecting AiTM Proxies in the Wild via TLS/JARM Fingerprints. Applied Network Defense, 9(2), 15–31.
3. Nguyen, T., Weber, J., & Silva, R. (2023). Session Hijacking on the Modern Web: From Cookies to Token Theft. Web Security Perspectives, 7(4), 101–128.
4. Johnson, A. (2022). Practical Detections for Identity-Centric Threats in SME Environments. Blue Team Engineering Review, 5(1), 1–19.
5. Widodo, S., & Rahman, D. (2025). Building Low-Cost Detection Pipelines for Cloud Identities. Proceedings of the Security Operations Symposium, 58–72.
Published
2026-07-16
How to Cite
Ardiansyah, F., Melwani, K., & Firdawinata, M. (2026). The Moderating Role of Institutional Quality on the Effect of Household Consumption and Government Expenditure on Economic Growth in Indonesia. International Journal of Science and Society, 8(2), 423-436. https://doi.org/10.54783/ijsoc.v8i2.1635
Issue
Vol 8 No 2 (2026): International Journal of Science and Society (IJSOC)
Section
Articles

Copyright (c) 2026 International Journal of Science and Society

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Ownership of copyright
The copyright in this website and the material on this website (including without limitation the text, computer code, artwork, photographs, images, music, audio material, video material and audio-visual material on this website) is owned by IJSOC and its licensors.
 
Copyright license
IJSOC grants to you a worldwide non-exclusive royalty-free revocable license to:
   - view this website and the material on this website on a computer or mobile device via a web browser;
   - copy and store this website and the material on this website in your web browser cache memory; and
   - print pages from this website for your  use.
   - All articles published by Academic Journals are licensed under the Creative Commons Attribution 4.0 International License. This permits anyone to copy, redistribute, remix, transmit and adapt the work provided the original work and source is appropriately cited.
IJSOC does not grant you any other rights in relation to this website or the material on this website.   In other words, all other rights are reserved.
For the avoidance of doubt, you must not adapt, edit, change, transform, publish, republish, distribute, redistribute, broadcast, rebroadcast or show or play in public this website or the material on this website (in any form or media) without  appropriately and conspicuously citing the original work and source or ACADEMIC JOURNALS prior written permission.  
 
Permissions
You may request permission to use the copyright materials on this website by writing to compliance@ijsoc.goacademica.com.
 
Enforcement of copyright
IJSOC takes the protection of its copyright very seriously.
 
If IJSOC discovers that you have used its copyright materials in contravention of the license above, IJSOC may bring legal proceedings against you seeking monetary damages and an injunction to stop you using those materials.  You could also be ordered to pay legal costs.
 
If you become aware of any use of IJSOC' copyright materials that contravenes or may contravene the license above, please report this by email to Compliance@ijsoc.goacademica.com.
 
Infringing material
If you become aware of any material on the website that you believe infringes your or any other person's copyright, please report this by email to Compliance@ijsoc.goacademica.com.