Regional Economic Convergence in Sumatera Island: An Analysis by Industrial Sector

Yulianita, Anna and Marrisa, Fenny (2020) Regional Economic Convergence in Sumatera Island: An Analysis by Industrial Sector. SEABC 2019- 5th Sriwijaya Economics, Accounting, and Business Conference, 142. pp. 64-70. ISSN 2184-5212

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This study aims to analyze the economic convergence of industrial sector between regions in Sumatra and analyze the factors that influence the industrial sector growth. The scope of this study is limited to the problems associated with the convergence of economic, industrial sector investment and industrial growth provinces in Sumatra Island. Variables used in the model is the GDP percapita convergence by Province in Sumatra, industrial sector investment by provinces in Sumatra Island from 2000 to 2017. By using estimation result of Regression Convergence Absolut in Sumatra Island, there is statistically influence GDP percapita a year earlier industrial sector significantly affect to GDP percapita industrial sector. The regression coefficient indicates a positive direction, it is mean that the previous industrial sector GDP rise caused by increasing in GDP percapita of industrial sector. Additional variable has a positive effect on the variable investment and labor income percapita, but the industrial sector had a negative effect. The magnitude of the effect of some economic variables that have the effect of low and statistically insignificant, thus the extra few economic variables have no impact on GDP percapita climbed down the overall industrial sector. In general, labor and investment have a significant negative impact toward the GDP percapita of industrial sectors. As for the percapita income is positive but not significant effect on percapita income of the industrial sector.

Item Type: Article
Uncontrolled Keywords: convergence, industry, GDP, Sumatera Island, economic growth
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD72-88 Economic growth, development, planning
H Social Sciences > HJ Public Finance > HJ9-9940 Public finance
H Social Sciences > HT Communities. Classes. Races > HT388 Regional economics. Space in economics
P Language and Literature > PQ Romance literatures > PQ5901-5999 Regional, provincial, local, etc.
S Agriculture > SH Aquaculture. Fisheries. Angling > SH334 Economic aspects. Finance
Divisions: Institute of Research and Community Service
Depositing User: Dr Anna Yulianita
Date Deposited: 27 Aug 2022 08:18
Last Modified: 27 Aug 2022 08:18

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