scholarly journals Economic and Non-Economic Factors Effect Per Capita Income in Indonesia

2020 ◽  
Vol 8 (4) ◽  
pp. 315-323
Author(s):  
Rizqi Ulfa Nurlaili ◽  
Malik Malik Cahyadin

Indonesia per capita income tends to increase during 2013 – 2016. It indicates that Indonesian people are able to achieve welfare improvement. This research aims to analyze the effects of inflation, Human Development Index (HDI), population, Gross Regional Domestic Product (GRDP) growth, Minimum Wage, and technology utilization on per capita income in Indonesia. It becomes a reference for local economic policies at local governments in Indonesia. The estimation model uses panel data under the Fixed Effects Model (FEM). FEM is chosen based on the Chow and Hausman test. This research uses time series from 2013 – 2016 and cross-section of 34 provinces in Indonesia. The findings show that inflation and GRDP have a significant effect on per capita income with negative direction, while HDI and minimum wage have a significant effect with positive direction, whereas population and technology utilization for workers do not have a significant effect. The coefficient of determination (Adjusted R2) is about 0.999754. It means that 99.975% of the dependent variable is explained by the variation of the independent variables. The implication of policies, namely: a) the local governments should control the inflation rate; b) the local governments should increase the domestic investment in health, education, and accessibility; and c) the local governments should promote technology utilization to the workers.

2021 ◽  
Vol 16 (1) ◽  
pp. 130-151
Author(s):  
Fernanda Andrade de Xavier ◽  
Aparna P. Lolayekar ◽  
Pranab Mukhopadhyay

We study the effect of revenue decentralization (RD) and expenditure decentralization (ED) on sub-national growth in India from 1981–1982 to 2015–2016 for 14 large (non-special-category) states. Our study provides evidence that both RD and ED play a defining role in India’s sub-national growth in this three-and-a-half-decade period. We use a panel data model with fixed effects (FE) and Driscoll and Kraay standard errors that control for heteroscedasticity, autocorrelation and cross-sectional dependence. To test for causality between growth and decentralization, we use the Granger non-causality test. The regression analysis is supplemented with the distribution dynamics approach. We find that: (a) While decentralization Granger-caused economic growth, the reverse causality effect of growth on decentralization was not significant; (b) Economic growth increased significantly after liberalization; (c) Decentralization, capital expenditure and social expenditure had significant positive impacts on economic growth; and (d) States that had high levels of decentralization also had high levels of per capita income, while states that had low decentralization also exhibited low per capita income.


2021 ◽  
Vol 4 (2) ◽  
pp. 125-144
Author(s):  
Andrew Phiri ◽  

The movie industry is increasingly recognised as a possible avenue for improving economic performance. This study focuses on film production and its influence on South African economic growth (per capita income and employment between 1970 and 2020). Our autoregressive lag distributive (ARDL) estimates on a loglinearised endogenous growth model augmented with creative capital indicate that the production of movies has no significant effects on long-run GDP growth, per capita GDP and employment. The baseline regressions find a short-run positive and significant influence of film production on per capita income and are devoid of long-run effects. However, re-estimating the regressions with interactive terms between movie production and i) government spending ii) foreign direct investment, improve the significance of film regression coefficients which all turn positive and significant, for government spending, and negative for foreign direct investment. Our results indicate that foreign investment crowds out domestic investment whilst government investment in movies is growth-enhancing.


2018 ◽  
Vol 2 (1) ◽  
pp. 24
Author(s):  
Darman Saputra

The Least Square Dummy Variable (LSDV) method can be used to estimate parameters in the panel data regression model incomplete one-way fixed effect. To produce the best model with GDP data of GRASB. Variables that do not occur heteroscedasticity and models that meet the smallest sum square of error is the variable Mining and Processing Industry, this variable affects the per capita income. The Feasible Generalized Least Square (FGLS) method can be used to estimate the regression parameters for incomplete panel data for a one-way random effect. In this model produce the best model with non-oil and gas GRDP data. The variables that fulfill it are the processing Industry, service, and agriculture of Forestry and Fishery.  Therefore looking at the above model can be concluded non-oil and Gas GRDP has three factors that affect per capita income in Bangka Belitung. This should be a reference of local governments to further improve the quality or production in agriculture and services because this potential is more promising for the future. Software used to analyze data in this paper is with R.


2019 ◽  
Vol 1 (2) ◽  
pp. 69-79
Author(s):  
Romualdus Turu Putra Maro Djanggo ◽  
Marthen A I Nahumury

The research aims to analyse whether the labour, infrastructure and Percapita income factors influence industrial investments in Merauke District in 2001-2017. The data used in this study is secondary data. The method of collecting data using secondary data from the official data is issued by the Department of Migration and Employment of Merauke District and the official data from the Central Statistics agency of Merauke District. For data processing is done using SPSS 21 program. The results of this research show that labor variables, infrastructure, and per capita income simultaneously affect the value of industrial investment. The result of the coefficient of determination (R²) 25.6% showed that labor, infrastructure, and per capita income variables had no significant effect on increasing industrial investments. The results of this study also showed that the infrastructure variables were influential for the change in the value of industrial investments in Merauke district but the influence gained only on the level of 10% of its siknification. Keywords: Labour, infrastructure, investment value


Author(s):  
Otiwu K. ◽  
Peter A Okere ◽  
Uzowuru L.N

This study empirically evaluates the determinants of private domestic savings in Nigeria (1981- 2015). Secondary data were sourced from CBN statistical bulletin and bureau of statistics. Hypotheses were formulated and tested using vector error correction model (VECM) and the test for stationarity proves that the variables are integrated in 1(1) order which implies that unit roots do not exist among the variables. There is also long-run equilibrium relationship between the variables and the result also confirms about 29 percent short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicates that about 78 percent of the variations in private domestic savings are explained by changes in its determinants in Nigeria. The results show that per capita income and financial inclusion are major determinants of private domestic savings in Nigeria. The study therefore recommends that concerted and well articulated efforts should be made to make available and affordable credits to productive investments like small scale industries/businesses as they constitute an integral part of the growth and transformation process of an agro based economy like that of Nigeria this will induce employment, increase financial access and income of the various economic agents which will have a spillover effect on private savings. Secondly, since Per capita income and financial inclusion are the important factors that influence private savings in Nigeria, policy makers can promote growth of per capita income by improving productivity of workers and greater effort should be geared towards sustaining or improving on the financial inclusion strategies.


2021 ◽  
Vol 28 (2) ◽  
pp. 128-139
Author(s):  
I. A. Lakman ◽  
V. M. Timiryanova ◽  
D. V. Popov

The article presents results of a study on influence of population dynamics, regional characteristics and the type structure of income on consumption. The ability to investigate spatial dependencies and territorial effects over time was made possible by autoregression spatial models built on panel data. The article describes features of such models, sequence of calculations, and also presents modified tests to justify the choice of the model specification.Calculations were made using data from 83 constituent entities of the Russian Federation (cross-sectional observations) for 2010–2019 (10 time periods). The analysis showed that both population income and retail turnover, which largely determine the level and structure of population consumption, have spatial dependencies. The built spatial error model with fixed effects showed a positive influence on population consumption in the neighboring territories. The model also confirmed previously identified relationships: the positive impact of average per capita income and the negative impact of the Gini index on consumption. The built model with fixed effects allowed to isolate the individual effects of the territories, visualized using cartogram. On the basis of these assessments, several groups of territories with common properties and characteristics have been identified.Unlike previously built models, the authors’ spatial error autoregression model, built on panel data, took into account both the geographical heterogeneity and spatial dependence of average per capita income and retail turnover, expanding the existing understanding of the relationship between consumption and income. This, in turn, enables management decisions that take into account previously undetected features and enhance their validity.


2018 ◽  
Vol 7 (2) ◽  
pp. 128-136
Author(s):  
Novita Ika Sari

Penelitian ini bertujuan untuk mengetahui dan menganalisis pengaruh pengeluaran pemerintah untuk sektor pendidikan, kesehatan, pekerjaan umum dan pendapatan per kapita terhadap tingkat kemiskinan di Kabupaten/Kota Provinsi Daerah Istimewa Yogyakarta tahun 2007 – 2014. Variabel yang digunakan dalam penelitian ini adalah pengeluaran pemerintah sektor pendidikan, kesehatan, pekerjaan umum dan pendapatan per kapita terhadap tingkat kemiskinan di Kabupaten/Kota Provinsi DI Yogyakarta. Adapun pengaruh variabel independen terhadap variabel dependen dilakukan dengan Uji F dan Uji t dengan tingkat signifikansi 95% (α=5%).Hasil analisis data menunjukkan bahwa variabel pengeluaran pemerintah sektor pendidikan, kesehatan dan pendapatan per kapita berpengaruh negatif dan signifikan terhadap tingkat kemiskinan. Sedangkan pengeluaran pemerintah sektor pekerjaan umum tidak berpengaruh signifikan terhadap tingkat kemiskinan. Secara simultan, semua variabel independen berpengaruh terhadap tingkat kemiskinan. Koefisien determinasi R2 sebesar 97% menunjukkan variabel independen yang diteliti mampu menjelaskan pengaruhnya sebesar 97% terhadap variabel dependen, sedangkan sisanya sebesar 3% dijelaskan oleh variabel lain yang tidak dimasukkan dalam penelitian. This study aims to determine and analyze the effect of government’s expenditure on education, health, public works and per capita income to the level of poverty in the District / City of Daerah Istimewa Yogyakarta Province years 2007-2014.Variables used in this research is the government’s expenditure on the sector of education, health, public works and per capita income to the level of poverty in the District / City of Daerah Istimewa Yogyakarta Province. As for the influence of the independent variable on the dependent variable is done by F test and t test with significance level of 95% (α = 5%).The results of data analysis showed that government’s expenditure variable education, health and income per capita is negative and have significant effects on poverty levels while government’s expenditure for public works does not significantly influence the level of poverty. Simultaneously, all the independent variables affect the level of poverty. The coefficient of determination R2 of 97% shows the independent variables studied were able to explain the effect of 97% on the dependent variable, while the remaining 3% is explained by other variables not included in the study.


2014 ◽  
Vol 53 (3) ◽  
pp. 239-254 ◽  
Author(s):  
Faisal Jamil ◽  
Eatzaz Ahmad

Electricity theft is a common problem in many countries and energy worth billions of dollars is stolen annually from electricity grids. The problem has socioeconomic, political, environmental and technical roots, but the solution is generally sought solely through technical measures. This paper empirically investigates the effects of various factors including electricity price, per capita income, probability of detection, fines collected from offenders, weighted temperature index and load shedding, that may explain the theft. The study employed annual panel data obtained from nine electricity distribution companies in Pakistan for the period 1988–2010. The study estimates the Fixed Effects models through the least squares dummy variable (LSDV) technique and Generalised Method of Moments (GMM). Our results indicate that per capita income has significant negative and electricity price a positive effect on electricity theft with sufficiently high coefficient values. The probability of detection variable appears with a positive sign in both estimations indicating a poor deterrence. The results of LSDV show a positive impact of fine on conviction on electricity theft. But in GMM estimation, this variable appears with a right sign. The results from both models are robust in the case of load shedding and temperature variables. The findings show that economic variables are most significant in explaining electricity theft. The findings may also be applicable in other developing countries where hefty amounts of revenues are lost due to electricity theft. Keywords: Electricity Theft, Fixed Effects Model, Pakistan


2020 ◽  
Vol 5 (1) ◽  
pp. 97-117
Author(s):  
Whinarko Prijanto ◽  
◽  
Panji Prasetyanto ◽  

As an economic activity, Small and Micro Enterprises (SMEs) activities have provided opportunities work for the surrounding community and create a mobilization of production factors, although on a small scale. The purpose of this study was to determine the potential of SMEs in increasing rural economic growth. Taking objects in Purwodadi Village, Tegalrejo District, Magelang Regency, the research was conducted on 37 business units. From the research results, it is known that there is a business unit that has a very low turnover of Rp. 375,000, - and a very high turnover of Rp. 150,000,000, - per month. To find out the magnitude of the increase in per capita income, the Magelang Regency Minimum Wage approach in 2019 is a projection of per capita income that can be formed for the next 1 year or 12 months. To achieve the Magelang Regency Minimum Wage of Rp. 1,882,000, -, the business unit must grow by an average of 15.35% per month, or the total turnover of business units as forming village GDP must increase by 438%. With the Location Qutient (LQ) method, as many as 25 business units have LQ <1, out of 47 existing business units. The business contribution to the formation of total turnover was 34 business units, with a contribution of <1%, as many as 4 business units with a contribution equal to 1%, as many as 9 business units with a contribution of> 2%. The highest contribution of 24.44% was the business unit with the highest contribution, namely from the culinary business; mushrooms, cireng and nuggets.


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