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Journal : JDE (Journal of Developing Economies)

Economic Growth and Its Determinants in Less-Developed Regions: A Panel Quantile Approach Malik, Fania; Panjawa, Jihad Lukis; Islami, Fitrah Sari; Sugiharti, Rr. Retno
Journal of Developing Economies Vol. 10 No. 1 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i1.59954

Abstract

Economic growth is an important phenomenon because it is closely related to the ultimate goal of development, namely community welfare. However, not all regions in Indonesia have experienced an increase in economic growth. Less-developed regions are among those with low economic growth. This study aims to analyze the determinant of economic growth in 40 less-developed regions of Indonesia during 2015-2022 using a quantile panel regression analysis tool. The results show that the fixed capital formation, population, and human development have a significant positive effect on economic growth at low, medium, and high levels of economic growth. The internet usage variable has a significant positive effect on low and medium economic growth levels but has no effect on high economic growth levels. The access to clean water variable has a significant positive effect on low economic growth levels but has a significant negative effect on medium economic growth levels. Meanwhile, at high economic growth levels, access to clean water has no effect. The government is more committed to accelerating development and the community must actively cooperate in regional development to increase regional economic growth.
Impacts of Capital Formation, Labor, Human Development, and Tourism on Economic Growth in Yogyakarta Province Setiyani, Zulaekha; Panjawa, Jihad Lukis; Prakoso, Jalu Aji; Septiani, Yustirania
Journal of Developing Economies Vol. 10 No. 2 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i2.74812

Abstract

Objective: This study investigates the determinants of regional economic growth in the Special Region of Yogyakarta, focusing on five districts and cities during the period 2011–2024. The research addresses the problem of persistent interdistrict disparities despite Yogyakarta’s consistently higher economic growth than the national average. The main objective is to identify the key factors influencing regional growth and to assess their relative contributions within a tourism-driven economy. This empirical research is relevant to the broader macroeconomic context of regional development and income distribution. Methods: An empirical analysis using static panel data regression with a Fixed Effect Model (FEM) is employed. The dataset covers annual observations from 2011 to 2024 for five administrative areas. Variables include Gross Fixed Capital Formation (GFCF), the Human Development Index (HDI), labor force participation, and tourism income. The FEM method effectively controls for regional and temporal heterogeneity, yielding robust estimates of growth determinants. Findings: Empirical results reveal that GFCF, HDI, and tourism income have significant, positive effects on regional economic growth, underscoring the importance of investment, human capital, and tourism as primary drivers of growth. Conversely, the labor force variable shows no statistically significant impact. These findings underscore the distinct structure of Yogyakarta’s economy, where capital formation and tourism-based income play a more dominant role than labor quantity in driving growth. Originality/Value: This study enriches existing literature by reassessing growth determinants using updated data and emphasizing Yogyakarta’s tourism-based regional economy. It fills gaps in prior studies marked by mixed findings and limited tourism-focused analyses, offering new empirical insights into the tourism growth nexus at the subnational level. Policy Implication: Findings suggest that local governments should strengthen investment, human capital, and tourism development to achieve inclusive and sustainable growth. Policy efforts focusing on infrastructure, education, and tourism promotion are essential to reducing interdistrict disparities and fostering balanced regional development.  
Co-Authors A'Yun, Qurotul A. Garin, Fansza Adelia, Erika Nisa Alghifari, Muhammad Hafis Amelia Cyntia Kusuma Wardhani Amini, Nurul Fajar Anjani, Arlian Sherly anti, Tri Yuli anti, Tri Yuli Axel Giovanni Azmi, Reza Mu’tiqul Baroroh, Erli Bhimo Rizky Samudro, Bhimo Rizky Budi Rahardjo Chasanah, Hikmah Rochimatul Corolina, Natalia Nola Damayanti, Putri Nisrina Damayanti, Sekar Ayu Daryono Soebagiyo Dimas Bayu Nur Irvanie Dinar Melani Hutajulu Dzakirah, Aini Fadhilah ernikawati, ernikawati Fauziyah, Nasywaa Febriyanto, Aryo Dwi Guritno, Danur Condro Habibi, Hafidz Nasim Hadi Sasana Hadji, Kuswan Intan, Ikhtiara Anggitiya Islami, Fitrah Sari Isna Hana Nur Izati Izati, Isna Hana Nur Jalu Aji Prakoso Joko Triyanto Kariza, Alifia Ninda Kautsar, Akhmad Khusna, Siti Lailatul Kusmawati, Zulianissa Diah Kusumaningrum, Yunita Lak lak Nashat el Hasanah, Lak lak Nashat Lorentino Togar Laut Lorentino Togar Laut Mahrus Lutfi Adi Kurniawan Maknun, Lu'lu'ul Malik, Fania Maulana Yusuf Moonti, Roy Marthen Muhammad Arif Kurniawan Muhammad Arif Kurniawan Muhammad Iqbal Fanani Gunawan Nibras Anny Khabibah Ningsih, Nur Cahyati Novitaningtyas, Ivo Nugroho, Bondan Nur Izati, Isna Hana Nuraeni, Risky Nurkhasanah Nurkhasanah Nurunnisa, Ika Amalia Pajrin, Rani Pamela, Queen Prakoso, Jalu Aji Pramudianti, Ulfa Rahma Prasetyowati, Hidayatul Pratama, Ikhwan Annas Putri, Diana Hafi Zahri R Maya Putri Rahayu Ramadani, Cahya Ramdani, Nova Retno Sugiharti Rohimuddin Rr Retno Sugiharti Rr. Retno Retno Sugiharti Rr. Retno Sugiharti Sari Islami, Fitrah Septiani, Yustirania Setianingsih Setiyani, Zulaekha Shifa Ziqrana Siti Mu’awanah Siti Nur Aisyah Siti Sarifah Sritutur, Fera Febriana Sudati Nur Sarfiah Sugiharti, Rr. Retno Suryatimur, Kartika Pradana Syarifah, Yetty Tri Lestari Ulinni’mah, Kusuma W. Risqilla, Geffanio Ardasya Wawan Kurniawan Widianingrum, Ira Fitriani Widianingrum, Ira Fitriani Yustirania Septiani