The Dynamics Model of Cross-Regional to Enhance Economic Growth: New Empirical Evidence from Indonesia
Economic growth growth is crucial to improve community welfare in the long term. Although Indonesia’s economic growth is on an upward trend, Indonesia must remain vigilant in its relationship with the global world due to the rapidly changing and highly uncertain dynamics. Indonesia’s economic growth...
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| Format: | Article |
| Language: | English |
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Sciendo
2024-12-01
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| Series: | ECONOMICS |
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| Online Access: | https://doi.org/10.2478/eoik-2024-0046 |
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| author | Badriah Lilis Siti Arintoko |
| author_facet | Badriah Lilis Siti Arintoko |
| author_sort | Badriah Lilis Siti |
| collection | DOAJ |
| description | Economic growth growth is crucial to improve community welfare in the long term. Although Indonesia’s economic growth is on an upward trend, Indonesia must remain vigilant in its relationship with the global world due to the rapidly changing and highly uncertain dynamics. Indonesia’s economic growth is also inseparable from the influence of various provinces’ economic growth, which varies due to the economic dynamics between regions. These dynamics can influence the region’s contribution to national economic growth. Therefore, identifying the important role of the determining factors of economic growth and appropriate policies in dealing with economic dynamics between regions is crucial because sustainable economic growth is also essential for improving community welfare. This study examines the determinants of Indonesia’s economic growth from a regional economic perspective, using a Dynamic Panel Data analysis model with three estimation models. The first model focuses on the primary variables of technological progress, population, and investment. The second model adds the human capital variable, while the third model further incorporates the variables of open economy, economic structure changes, and income inequality. The study utilizes data from the Indonesian Central Statistics Agency, covering 27 provinces from 2015 to 2022. The results indicate that increased technological progress, population, investment, human resources, economic openness, and economic structure changes can increase economic growth, while inequality of income harms economic growth. This research has implications that in creating determinant conditions for conducive economic growth, it needs to be carried out evenly in all provinces in Indonesia. |
| format | Article |
| id | doaj-art-57d2b282272c488984b4f92cd7313f0b |
| institution | Kabale University |
| issn | 2303-5013 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | ECONOMICS |
| spelling | doaj-art-57d2b282272c488984b4f92cd7313f0b2025-01-02T05:58:43ZengSciendoECONOMICS2303-50132024-12-0112337939510.2478/eoik-2024-0046The Dynamics Model of Cross-Regional to Enhance Economic Growth: New Empirical Evidence from IndonesiaBadriah Lilis Siti0Arintoko11Universitas Jenderal Soedirman, Faculty of Economics and Business, Department of Economics, Indonesia1Universitas Jenderal Soedirman, Faculty of Economics and Business, Department of Economics, IndonesiaEconomic growth growth is crucial to improve community welfare in the long term. Although Indonesia’s economic growth is on an upward trend, Indonesia must remain vigilant in its relationship with the global world due to the rapidly changing and highly uncertain dynamics. Indonesia’s economic growth is also inseparable from the influence of various provinces’ economic growth, which varies due to the economic dynamics between regions. These dynamics can influence the region’s contribution to national economic growth. Therefore, identifying the important role of the determining factors of economic growth and appropriate policies in dealing with economic dynamics between regions is crucial because sustainable economic growth is also essential for improving community welfare. This study examines the determinants of Indonesia’s economic growth from a regional economic perspective, using a Dynamic Panel Data analysis model with three estimation models. The first model focuses on the primary variables of technological progress, population, and investment. The second model adds the human capital variable, while the third model further incorporates the variables of open economy, economic structure changes, and income inequality. The study utilizes data from the Indonesian Central Statistics Agency, covering 27 provinces from 2015 to 2022. The results indicate that increased technological progress, population, investment, human resources, economic openness, and economic structure changes can increase economic growth, while inequality of income harms economic growth. This research has implications that in creating determinant conditions for conducive economic growth, it needs to be carried out evenly in all provinces in Indonesia.https://doi.org/10.2478/eoik-2024-0046economic growthtechnological progresspopulationinvestmenthuman capitalopen economicstructural changeincome inequalitydynamic modelo1o3o4 |
| spellingShingle | Badriah Lilis Siti Arintoko The Dynamics Model of Cross-Regional to Enhance Economic Growth: New Empirical Evidence from Indonesia ECONOMICS economic growth technological progress population investment human capital open economic structural change income inequality dynamic model o1 o3 o4 |
| title | The Dynamics Model of Cross-Regional to Enhance Economic Growth: New Empirical Evidence from Indonesia |
| title_full | The Dynamics Model of Cross-Regional to Enhance Economic Growth: New Empirical Evidence from Indonesia |
| title_fullStr | The Dynamics Model of Cross-Regional to Enhance Economic Growth: New Empirical Evidence from Indonesia |
| title_full_unstemmed | The Dynamics Model of Cross-Regional to Enhance Economic Growth: New Empirical Evidence from Indonesia |
| title_short | The Dynamics Model of Cross-Regional to Enhance Economic Growth: New Empirical Evidence from Indonesia |
| title_sort | dynamics model of cross regional to enhance economic growth new empirical evidence from indonesia |
| topic | economic growth technological progress population investment human capital open economic structural change income inequality dynamic model o1 o3 o4 |
| url | https://doi.org/10.2478/eoik-2024-0046 |
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