ANALYSIS OF CONVERGENCE BETWEEN PROVINCES IN INDONESIA

Kartini Kartini, Rahmi Nur Islami, Sulistya Rini Pratiwi, Meylin Rahmawati, Retno Dwi Arini

Abstract


This study aims to determine whether or not sigma convergence, whether absolute and conditional convergence occurs or not, and to determine the convergence speed. This study uses secondary data, namely Gross Regional Domestic Product (GRDP) per capita, poverty, and inequality for each province in Indonesia from 2017-2021. The method used in this study is panel data with a fixed effect approach. The results of the analysis using the sigma convergence (σ) approach show the occurrence of convergence. The results of the absolute convergence analysis explain the divergence of GRDP per capita in Indonesia with a divergence speed of 13.76% per year. The results of the conditional convergence analysis show that there is a divergence of GRDP per capita in Indonesia with a divergence speed of 13.62% per year.


Keywords


Convergence; Growth

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DOI: https://doi.org/10.20961/aedc.v8i2.79843

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