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All Journal Jurnal Litbang Sukowati : Media Penelitian dan Pengembangan
Joko Susanto
UPN Veteran Yogyakarta
Humanities Economics, Econometrics & Finance Education Environmental Science Social Sciences

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LABOR PRODUCTIVITY, NUMBER OF MOTOR VEHICLE AND INCOME CONVERGENCE Joko Susanto
Jurnal Litbang Sukowati : Media Penelitian dan Pengembangan Vol 4 No 1 (2020): Vol. 4 No. 1, November 2020
Publisher : Badan Perencanaan Pembangunan Daerah, Penelitian dan Pengembangan Kabupaten Sragen

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32630/sukowati.v4i1.181

Abstract

This research examines the occurrence of income convergence in the Surakarta Ex-Residency. Data included per capita income, labor productivity, and the number of motor vehicles published by the Central Bureau of Statistics (BPS) from 2001-2018. The research model was formed by adding several control variables to form a regression equation where the current year's per capita income was dependent. In contrast, the preceding year's per capita income, labor productivity, and the number of motor vehicles were independent variables. Subsequently, the regression equation was estimated by the Dynamic Ordinary Least Square (DOLS) and Fully Modified Ordinary Least Square (FMOLS) methods. The results showed a convergence of per capita income among regions. The income in more impoverished regions grew faster compared to wealthier ones. For this reason, the gap in income per capita between regions lessened significantly. Increased labor productivity and the number of motor vehicles had a positive effect on per capita income, supporting income convergence. Therefore, the transportation network needs to be improved by the government to support the mobility of workers and goods, leading to income convergence.
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