scholarly journals THE DISPARITY AND THE CONVERGENCE OF THE ECONOMIC GROWTH: THE STUDY OF THE NEW AUTONOMOUS REGIONS IN SUMATERA, INDONESIA

2019 ◽  
Vol 7 (6) ◽  
pp. 673-679
Author(s):  
Ambya ◽  
Nairobi ◽  
I Wayan Suparta ◽  
Andi Desfiandi ◽  
Jamaliah Said
Keyword(s):  
Economic Growth ◽  
Convergence Rate ◽  
Research Method ◽  
Absolute Convergence ◽  
Fixed Effect Model ◽  
Half Time ◽  
Effect Model ◽  
Per Capita ◽  
The Absolute ◽  
Autonomous Regions

Purpose: As a province located outside Java Island, the provinces in Sumatera Island have diversity in economic growth among the regions which could lead to the inequality of development. This study aims to analyze the convergence of sigma and absolute beta and also to measure the speed of the convergence of the economic growth in the new autonomous regions in Sumatera. Methodology: The research method in this study used the data panel in the form of Fixed Effect model. Results: The result of the research showed that the convergence of sigma occurred over four years during the study period while the convergence of the absolute beta did not occur. It can be seen from the Gross Regional Domestic Product (GRDP) per capita levels of the new autonomous regions which are lower and it does not grow faster than the new autonomous regions which have higher GRDP per capita levels. The absolute convergence rate is 11 percent per year and the time it takes to close half of the initial half-time conversion (the half-time convergence) is six years.

scholarly journals PELUANG PARIWISATA DALAM MENURUNKAN KEMISKINAN DI ERA MASYARAKAT EKONOMI ASEAN (MEA)

2016 ◽  
Vol 16 (2) ◽  
pp. 199
Author(s):  
Dody Harris Darmawan ◽  
Adi Yunanto
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Fixed Effect Model ◽  
Economic Community ◽  
Estimation Model ◽  
Income Per Capita ◽  
Effect Model ◽  
Tourism Sector ◽  
Per Capita ◽  
Asean Economic Community

ABSTRACTIn 2015, the ASEAN Economic Community (AEC), or better known as Masyarakat Ekonomi ASEAN (MEA) have agreed to jointly deal with the benefit expectations each member state.One of those opportunities to alleviate poverty related MEA is on tourism sector as a result of their visa-free between MEA member countries.Tourism development and economic growth have a mutualism relationship in poverty alleviation.This study analyzes the effect of tourism sector and income per capita on poverty reduction by panel data in 30 provinces of Indonesia in the period 2004 - 2012. Method of analysis uses Least Squaremethod and the estimation model used is Fixed Effect Model (FEM). The empirical results shows the tourism sector and income per capita have a significant effect to poverty reduction. Every 1% increase of tourism sector contribution effects on 0.005% poverty reduction, and every 1% increase of income per capita effects on 0.085%. poverty reduction

scholarly journals Determinant of FDI Inflows in OIC Countries

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Tania Megasari ◽  
Samsubar Saleh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Direct Investment ◽  
Trade Openness ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Fdi Inflows ◽  
Macroeconomic Variables ◽  
Effect Model

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).

scholarly journals Determinants of Structural Transformation in ASEAN

2020 ◽  
Vol 35 (2) ◽  
pp. 137
Author(s):  
Kalies Sirieh Puspitowati ◽  
Deden Dinar Iskandar
Keyword(s):  
Panel Data ◽  
Structural Transformation ◽  
Value Added ◽  
Fixed Effect Model ◽  
Dependency Ratio ◽  
Service Value ◽  
Income Per Capita ◽  
Effect Model ◽  
Per Capita ◽  
Asean Countries

This study aims to analyze the determinants of the structural transformation in ASEAN countries. This study uses quantitative panel data from 9 countries in ASEAN from 2000 to 2017, thus makes up for 162 observations. This study employs panel data regression analysis with fixed effect model approach. In this study, the shifting of sectoral value added away from agriculture sectors indicates structural transformation. In particular, sectoral value added consists of the industrial value added and service value added. The results of this study shows that dependency ratio, income per capita, education, and trade significantly affect the increase of industrial value added during observation period. On the other hand, total population, dependency ratio, income per capita, education, control of corruption, and trade significantly increase the service value added over time.

Exploring the Channels and Impact of Debt on Economic Growth

2018 ◽  
Vol 19 (2) ◽  
pp. 171-191
Author(s):  
Kashif Munir ◽  
Nisma Riffat Mehmood
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Good Governance ◽  
Public Investment ◽  
Fixed Effect Model ◽  
Asian Countries ◽  
Conditional Convergence ◽  
Macroeconomic Policies ◽  
Effect Model ◽  
Private And Public

The objective of this study is to analyse the effect of debt on economic growth as well as the channels, that is, investment, total factor productivity (TFP), interest rate and saving channel through which debt affects economic growth in South Asian countries. The study uses growth model based on conditional convergence and augments to include debt. Panel data of four South Asian countries from 1990 to 2013 at annual frequency are utilized and fixed effect model is used for estimation. The results of the study showed that inverted U-shaped relationship exists between debt and economic growth in South Asian countries. However, the most important and significant channel through which debt affects economic growth is private and public investment as well as TFP. Reducing debt accumulation alone will not rectify the problem unless the supplementary macroeconomic policies are made sound; therefore, there is a dire need to improve macroeconomic policies, good governance and elimination of structural distortions. JEL: C23, H6, O47

scholarly journals Impact of Insurance Market on Economic Growth in Post-Transition Countries

2014 ◽  
Vol 44 (1) ◽  
pp. 92-105 ◽  
Author(s):  
Jaba Phutkaradze
Keyword(s):  
Economic Growth ◽  
Transition Economies ◽  
Fixed Effect Model ◽  
Transition Countries ◽  
Insurance Market ◽  
Effect Model ◽  
Annual Total ◽  
Dataset Analysis ◽  
Insurance Penetration ◽  
Cross Country

Abstract The purpose of this work is to identify whether the development of an insurance market is linked to economic growth in former transition countries. A multiple regression analysis is employed to estimate the insurance-growth relationship, using a cross-country panel dataset analysis tracking annual total insurance penetration in 10 countries over the 2000-2012 period, and applying a fixed effect model to test the hypothesis that this linkage is demonstrably positive. The results show a negative and statistically non-significant correlation between insurance and GDP growth, suggesting a lack of evidence that insurance promotes economic growth in post-transition economies.

scholarly journals Pengaruh ketimpangan pendapatan dan kemiskinan terhadap pertumbuhan ekonomi antar pulau di Indonesia

2019 ◽  
Vol 14 (2) ◽  
pp. 55-66
Author(s):  
Selamet Rahmadi ◽  
Parmadi Parmadi
Keyword(s):  
Economic Growth ◽  
Fixed Effect Model ◽  
Model Estimation ◽  
Estimation Model ◽  
Hausman Test ◽  
Pooled Data ◽  
Effect Model ◽  
Panel Data Regression ◽  
Data Regression ◽  
Estimation Models

This study aims to find out and analyze the effect of income inequality and poverty on economic growth on each island in Indonesia. To answer these objectives, panel data regression (pooled data) is used. The results of the study show: (1). the best regressions on estimation models are based on the Chow and the Hausman test using the Fixed Effect Model estimation model for each island in Indonesia. (2). Income and poverty inequality negatively affected economic growth in all islands in Indonesia during the 2015-2018.

scholarly journals Analysis of the Influence of Infrastructure on Economic Growth in North Sumatra Province

2021 ◽  
Vol 8 (4) ◽  
pp. 196-210
Author(s):  
Syamsidar Sinaga ◽  
Irsad . ◽  
Rahmanta .
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Government Spending ◽  
Fixed Effect Model ◽  
Road Infrastructure ◽  
Health Infrastructure ◽  
Effect Model ◽  
Independent Variable ◽  
Infrastructure Health ◽  
North Sumatra

The objective of the research was to analyze the influence of road infrastructure, health infrastructure, and government spending in infrastructure on economic growth in North Sumatra Province. In the model equation, economic growth is dependent variable while road infrastructure, health infrastructure and government spending in infrastructure are independent variable. The scope of this research is the district and city in North Sumatra Province, exactly 32 districts/cities from 2015-2019. The analyzing model is the Fixed Effect Model, by using E-views 10 software. The result of the research showed that road infrastructure, health infrastructure, and government spending in infrastructure simultaneously had significant influence on economic growth. Partially road infrastructure had negative and not significant influence on economic growth, health infrastructure had positive and significant influence on economic growth and government spending in infrastructure had positive and not significant influence on economic growth in North Sumatra Province. Keywords: Road Infrastructure, Health Infrastructure, Government Spending in Infrastructure, Economic Growth.

scholarly journals Inequality and Economic Growth: An Analysis of 8-Panels

2017 ◽  
Vol 3 (2) ◽  
pp. 173
Author(s):  
Khadijah A. Idowu ◽  
Yusuf Bababtunde Adeneye
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Specific Effect ◽  
Developed Countries ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Effect Model ◽  
The World

<p><em>Purpose: This paper investigates the effects of inequality on economic growth in the world using continental approach.</em><em></em></p><p><em>Design/methodology:<strong> </strong>Gini Coefficient and Gross Domestic Products (GDP) per capita were used to measure inequality and economic growth respectively. The study conducted a panel data analysis of the relationship between inequality and economic growth. The data span from 1991-2015. Five countries were selected each from seven continents and were also pooled together to constitute a single panel for 35 countries, thus establishing 8 panels. The Hausman test was conducted to determine whether a random or fixed effect model best fit pooled countries analysis or not.</em><em></em></p><p><em>Findings: Findings revealed that for the developing countries, high income inequality retards economic growth while for the developed countries such as Europe countries; the situation seems to be different. European countries as revealed in the findings showed that developed countries have benefited from inequality which has significantly and positively affected their economic growth. The results for Panel II (Asia countries) and Panel III (Europe countries) are in line with the study of Forbes (2000) and Li and Zou (1998) that documented that inequality boosts economic growth. Importantly, we found that inequality positively affects economic growth for Panels/Continents with fixed effect model while inequality negatively affects economic growth for Panels/Continents with random effect model.</em></p><p><em>Research Limitation: The study did not control for each continent differences. For African countries, weak institutional settings and environment is a key factor contributing to high inequality.</em><em></em></p><p><em>Originality: The paper was able to know the specific effect of inequality on economic growth in each continent in the World. This documents continents that have benefited from inequality and those that inequality has greatly affected their economies negatively.</em><em></em></p>

scholarly journals Sci-tech Innovation, Financial Development and Economy Growth ——Empirical Analysis Based on Static and Dynamic Panel Data

2018 ◽  
Vol 227 ◽  
pp. 02014
Author(s):  
Rongrong Wei ◽  
Zhaopeng Yu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Empirical Analysis ◽  
Financial Development ◽  
Yangtze River ◽  
Fixed Effect Model ◽  
Dynamic Panel Data ◽  
Effect Model ◽  
One Step ◽  
Development Structure

The paper makes empirical analysis of the relationship between sci-tech innovation, financial development and economic growth in China’s Yangtze river economic belt by building panel data period fixed effect model of 11 provinces and cities in China’s Yangtze river economic belt from 2005 to 2015. Static panel analysis results show that financial development and sci-tech innovation in the east, middle and west of Yangtze river economic belt have significantly different effects on economic growth, the performance’s ordering of all provinces and cities in Yangtze river economic belt is east>middle>west; In system GMM(one-step),the ranking of financial development’s contribution to economic growth is financial development structure>financial development efficiency>financial development scale, financial development scale has lag effect on economic growth, and there is still much room for sci-tech innovation to drive economic growth.

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