A Reassessment of Regional Growth Convergence in Indonesia
| Main Authors: | , Anak Agung Rai Surya Agung, S.T., , Prof. Yoichi Okita, Ph.D. |
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| Format: | Thesis NonPeerReviewed |
| Terbitan: |
[Yogyakarta] : Universitas Gadjah Mada
, 2011
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| Subjects: | |
| Online Access: |
https://repository.ugm.ac.id/90367/ http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=53314 |
Daftar Isi:
- Some studies on growth convergence have given mixed results about the rate of convergence. This study reassesses regional growth convergence in Indonesia by implementing dynamic panel data estimation on provincial data over the period 1989�2009. Using neoclassical growth model as suggested by Solow and System GMM estimator, this study finds that there are absolute and conditional convergences among provinces in Indonesia over the period 1989�2009. The estimated rates of conditional growth convergence from the basic and the augmented Solow models are 2.4% per year and 2.2% per year, respectively. The results also show that investments in both physical capital and human capital are positively correlated with economic growth, while the correlation between population growth rate and economic growth is found to be not significant. This study also finds no significant differences in convergence rates between western and eastern regions of Indonesia, as well as before and during the decentralization era.