Jurnal Ekonomi Pembangunan
Vol 14 No 3 (2025): Volume 14 Nomor 3 Tahun 2025

Provincial Economic Convergence in Post-Decentralization Indonesia: A Panel Analysis from 2000 to 2022

Aulia, Hanna Hilyati (Unknown)
Puspita Sari, Dwi Retno (Unknown)



Article Info

Publish Date
31 Dec 2025

Abstract

This study examines the dynamics of economic convergence across Indonesian provinces during the period 2000–2022 by employing β-convergence, σ-convergence, and the Williamson Index. Provincial GDP per capita at constant 2010 prices is analyzed within a panel data framework. The results indicate significant β-convergence, implying that provinces with lower per capita income have grown faster than wealthier provinces. The σ-convergence analysis reveals a long-term decline in income dispersion across provinces, although temporary fluctuations occurred during the global financial crisis and the COVID-19 pandemic. The Williamson Index also exhibits a downward trend, indicating a more equal distribution of income among provinces. These findings suggest that fiscal decentralization and infrastructure development have contributed to reducing regional inequality, although the convergence process has been relatively moderate

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Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

JOURNAL OF ECONOMICS DEVELOPMEN (JEP) is a journal of Economics Development issued by Faculty of Economics and Business Lampung University. JEP is issued three times a year on April, August and December. The Redaction Board accept only research in the field of legal science that already in the form ...