Regional Disparities Analysis among Regencies and Cities in Indonesia 2015–2019
This study aims to describe the trend and level of welfare disparity among regencies and cities in Indonesia in 2015–2019 by observing aspects of population, population growth, road length, human capital, exports, the number of MSMEs/Small Entrepreneurs and the inflation rate. The novelty of this research is that up to now, there has never been a study using neoclassical convergence to see the trend of convergence at the regency and city levels in Indonesia. Therefore, this study is the first research to reveal the trend of convergence at the regency and city levels in Indonesia. This study used the convergence method in neoclassical growth models with panel data regression analysis. The results found that the gap among regencies and cities in Indonesia was influenced by the number of population, the percentage of population growth in the length of asphalt/Pavel roads, human resources, net exports, the number of MSMEs/small entrepreneurs and inflation with a value of R = 0.968. This indicates that all factors studied play a role in influencing the magnitude of the disparity among regencies and cities in Indonesia.
Keywords: disparity, convergence, decentralization, neoclassical growth model.
AGUS, W. (2017). Ekonometrika Teori dan Aplikasi untuk Ekonomi dan Bisnis. Ekonisia. Retrieved from https://onesearch.id/Record/IOS2865.YOGYA000000000045333
ARITENANG, A., & SONN J.W. (2018). The effect of decentralization and free trade agreements on regional disparity in a developing economy: the case of Indonesia. International Journal of Urban Sciences, 22(4), 546–564. https://doi.org/10.1080/12265934.2018.1425155
ARMSTRONG, H.A., & TAYLOR, J (2000). Regional Economics and Policy. Third edition. Wiley-Blackwell. Retrieved from https://www.wiley.com/en-us/Regional+Economics+and+Policy,+3rd+Edition-p-9780631217138
BARRO, R., & XAVIER, S.I.M. (2004). Economic Growth. Second Edition. The MIT Press. Retrieved from https://www.researchgate.net/publication/265483722_Economic_Growth_Second_Edition
CABRAL, R., & CASTELLANOS-SOSA, S. (2019). Europe's income convergence and the latest global financial crisis. Research in Economics, 73(1), 23–34. https://doi.org/10.1016/j.rie.2019.01.003
CANALETA, C. A. (2004). Regional Economic Disparities and Decentralization. Urban Studies, 41(1), 71-94. Retrieved from https://www.jstor.org/stable/43196997
LESSMANN, C., & SEIDEL, A. (2017). Regional inequality, convergence, and its determinants – A view from outer space. European Economic Review, 92, 110-132. https://doi.org/10.1016/j.euroecorev.2016.11.009
PURBA, B.M. (2018). Regional Disparity in Economic Development: The Case of Agropolitan Cities in North Sumatera, Indonesia. AGC 2018: Proceedings of the 1st Aceh Global Conference (Advances in Social Science, Education and Humanities Research), (pp. 335–340). Atlantis Press. https://dx.doi.org/10.2991/agc-18.2019.53
SENDOUW, R. (2018). The Underlying Factors of Regional Income Disparities in Indonesia. The Journal of Social Sciences Research, 2, 776–783. Retrieved from https://ideas.repec.org/a/arp/tjssrr/2018p776-783.html
NUGRAHA, A., & PRAYITNO, G. (2020). Regional Disparity in Western and Eastern Indonesia. International Journal of Economics & Business Administration, 8(4), 101–110. https://doi.org/10.35808/ijeba/572
- There are currently no refbacks.