Journal of Applied Economics in Developing Countries
Vol 8, No 2 (2023): Journal of Applied Economics in Developing Countries

ANALYSIS OF CONVERGENCE BETWEEN PROVINCES IN INDONESIA

Kartini Kartini (Faculty of Economics, Universitas Borneo Tarakan)
Rahmi Nur Islami (Faculty of Economics, Universitas Borneo Tarakan)
Sulistya Rini Pratiwi (Faculty of Economics, Universitas Borneo Tarakan)
Meylin Rahmawati (Faculty of Economics, Universitas Borneo Tarakan)
Retno Dwi Arini (Faculty of Economics, STIE Bulungan Tarakan)



Article Info

Publish Date
30 Sep 2024

Abstract

Indonesia is one of the developing countries that is always trying to increase its economic growth. Indonesia has a large number of people with various ethnic backgrounds and diverse customs, so this situation has given rise to disparities between regions. This study aims to determine whether or not sigma convergence, to find out whether absolute and conditional convergence occurs or not, and to determine the speed of convergence. This study uses secondary data, namely Gross Regional Domestic Product (GRDP) per capita, poverty, and inequality for each province in Indonesia from 2017-2021. The method used in this study is panel data with a fixed effect approach. The results of the analysis using the sigma convergence (σ) approach show the occurrence of convergence. The results of the absolute convergence analysis explain the divergence of GRDP per capita in Indonesia with a divergence speed of 13.76% per year. The results of the conditional convergence analysis show that there is a divergence of GRDP per capita in Indonesia with a divergence speed of 13.62% per year.

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Journal Info

Abbrev

jaedc

Publisher

Subject

Economics, Econometrics & Finance

Description

FOCUS This journal focused on economics, business, and management in developing countries studies and presents developments through the publication of articles and research reports. SCOPE The Journal of Applied Economics in Developing Countries (JAEDC) specializes on Economics, Business, and ...