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All Journal JIET (Jurnal Ilmu Ekonomi Terapan) JDE (Journal of Developing Economies) MITRA: Jurnal Pemberdayaan Masyarakat Jurnal Ekonomi Indonesia Jurnal Ilmiah Wahana Pendidikan Jurnal REP (Riset Ekonomi Pembangunan) Economic and Finance in Indonesia
Yasin, Mohammad Zeqi
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Religion Humanities Economics, Econometrics & Finance Education Engineering Public Health Social Sciences Other

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Revealing the Dual Dynamics: Transient and Persistent Efficiencies of the Indonesian Provincial Economies Yasin, Mohammad Zeqi; Adli, Fichrie Fachrowi
Economics and Finance in Indonesia Vol. 70, No. 2
Publisher : UI Scholars Hub

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Abstract

We examine the decomposition of technical efficiency components into transient and persistent horizons applied to the 33 provincial economies in Indonesia. Focusing on the post-decentralization era in 2002–2022, we employ Stochastic Frontier Analysis to gauge efficiency dynamics for time-variant and time-invariant evolution. We reveal that the persistent inefficiencies outweigh transient ones, implying the persistent inefficient behavior of Indonesian provinces. We also capture that East Nusa Tenggara and several provinces in Eastern Indonesia show the most lagged-behind in terms of persistent inefficiency severity, suggesting necessity of structural changes through more strategic and specific development models beyond mere heterogeneous input reallocation.
Co-Authors Adli, Fichrie Fachrowi Agustin, Almaidah Sela Amaliyah, Imroatul Andriana, Fany Septi Anggraini, Desta Rezzy Arsita, Selly Az-Zahra, Fatima Dini, Widya Septian Dwiguna, Ratnanda Kresna Erlangga, Okyviandi Putra Galini, Jauhairina Hakim, M. Arief Rahman Hidayat, Moh. Masyrofi Imamah, Alfia Nur Imron Rosadi Insani, Shafalul Arnestya Nur Mariyatul Qibtiyah Maulana, Raden M. Yusron Muttaqiin, Ahyar Nur Hamzah, Ibnu Nurwijayanti Paramitha, Nasywa Natania Pramesty, Intan Budi Purwono, Rudi Qodri, Moh Alil Rachmania Nurul Fitri Amijaya Rofiki, Ainur Sanjaya, Adi Putra Sari, Dyah Wulan Setiawan, Ardhi Harry Siti Hidayah Syahdafi, Teuku M. Indra Triningsih, Jessica Septina Umami, M. Mifthakul Wonnink, Riqbal Fauzi Salman Yanuarisma, Intan Zaharani, Zhafira