Efficient: Indonesian Journal of Development Economics
Vol 6 No 1 (2023)

Industrial Agglomeration and Economic Growth in Indonesia




Article Info

Publish Date
20 Jan 2023

Abstract

This study aims to analyze the level of industrial agglomeration using balassa index and spatial analysis. In addition, this study also analyzes the effect of industrial agglomeration, investment, infrastructure, and inequality on economic growth. The data used in this study are secondary data. This study uses panel data regression with a fixed effect model approach, consisting of 34 provinces in Indonesia for the period 2015-2020. The results of this study indicate that industrial agglomeration occurs in 7 provinces in Indonesia (Kepulauan Riau, West Java, Central Java, DI Yogyakarta, East Java, Banten, and Bali) with an average balassa index value of 1.34 and included in low levels. Industrial agglomeration tends to occur on Java Island. The results of the regression analysis in this study indicate that industrial agglomeration, investment, and infrastructure have a positive effect on economic growth in Indonesia, while inequality has a negative effect on economic growth in Indonesia.

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Journal Info

Abbrev

efficient

Publisher

Subject

Economics, Econometrics & Finance

Description

Efficient Journal is a scientific journal published by Department of Economics Development, Faculty of Economics, Universitas Negeri Semarang Indonesia. this journal published three times per year on January, June, and October and start publishing since 2018. Efficient Journal is a journal base on ...