Asian Journal of Management Analytics
Vol. 3 No. 3 (2024): July 2024

Determinants of Regional Economic Growth in Twenty Provinces in Indonesia Using a Data Panel Approach

A.Nur Fitrianti (Unknown)
Retno Fitrianti (Unknown)
Andryirawan Yakub (Unknown)
Andi Sopian (Unknown)
Hamka, Hamka (Unknown)
A.Baso Aditya Sapanang (Unknown)



Article Info

Publish Date
22 Jul 2024

Abstract

The Western and Central Indonesia Regions are far superior when compared to the Eastern Indonesia Region. This is a result of a number of factors, including variations in development spending, the quantity of balancing funds, population, level of investment in the area, and the region's natural resources. The purpose of this study is to investigate and evaluate the effects of macroeconomic factors, the status of oil-rich regions, and regional government spending on regional economic growth. This analysis employs a static panel and dynamic panel approach (VECM panel). The research uses data from 20 provinces in Indonesia between 2008 and 2018, which includes complete data from 34 provinces. The study's findings demonstrate that long-term (VECM panel) spending on education, agriculture, general allocation funds, population, and foreign investment has a positive impact on regional economic growth, while spending on health, fisheries, and maritime has a negative impact. According to studies conducted using a static panel, foreign direct investment and spending on foreign direct investment, education, agriculture, fisheries, and maritime affairs have a positive impact on regional economic growth, while the General Allocation Fund has a negative impact. Research has demonstrated that the dummy variable representing regional status has a positive impact on regional economic growth. The government ensures that the state budget is allocated more optimally to overcome this problem inequality in obtaining opportunities in the education and health sectors through improvement public infrastructure services.

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Journal Info

Abbrev

ajma

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

The Asian Journal of Management Analytics (AJMA) is a journal focused on the theory and application of data analytics and its applications in contemporary business, economics, and management disciplines. These disciplines include accounting, finance, management, marketing, economics ...