Regional Disparities Analysis among Regencies and Cities in Indonesia 2015–2019

Abstract

This study aims to describe the trend and level of welfare disparity among regencies and cities in Indonesia in 2015–2019 by observing aspects of population, population growth, road length, human capital, exports, the number of MSMEs/Small Entrepreneurs and the inflation rate. The novelty of this research is that up to now, there has never been a study using neoclassical convergence to see the trend of convergence at the regency and city levels in Indonesia. Therefore, this study is the first research to reveal the trend of convergence at the regency and city levels in Indonesia. This study used the convergence method in neoclassical growth models with panel data regression analysis. The results found that the gap among regencies and cities in Indonesia was influenced by the number of population, the percentage of population growth in the length of asphalt/Pavel roads, human resources, net exports, the number of MSMEs/small entrepreneurs and inflation with a value of R = 0.968. This indicates that all factors studied play a role in influencing the magnitude of the disparity among regencies and cities in Indonesia