Penggunaan Metode Beta-Convergence Dalam Menganalisis Determinan Kemakmuran Regional Indonesia

Abstraksi

We tested the determinants affecting prosperity in Indonesia, a country with a large number of provinces and varying topographic characteristics and geographic conditions. Differences in distance and location for some regions away from the economic center are sometimes a classic obstacle to economic development in a region. Even the problem of this prosperity gap is often compounded by socio-economic differences and uneven infrastructure in every region of Indonesia. We have analyzed the determinants of regional prosperity using several characteristics, including: geography, market accessibility, openness of a region, and transport and infrastructure factors. This study uses a macro-scope analysis unit, in which the social and economic characteristics of each province in Indonesia are derived from national survey data. Analytical approach through beta convergence method, we do to see determinant of prosperity of region in Indonesia in year 2010-2017. The result of dynamic panel regression analysis with sys-GMM (System Generalized Method of Moment) shows that the existence of convergence of prosperity in Indonesia and it takes 7 years to reduce the gap by half. In a process of convergence that takes a long time, indicating that the equity of welfare and reduction of the gap through the determinants mentioned above is difficult and requires great effort. Through the analysis process that has been controlled by the value of the gini index, these findings are expected to contribute to the government in its efforts to reduce inequality and achieve equality of welfare in every region in Indonesia.