Regional Economic Convergence in Sumatera Island: An Analysis by Industrial Sector

摘要

This study aims to analyze the economic convergence of industrial sector between regions in Sumatra and analyze the factors that influence the industrial sector growth. The scope of this study is limited to the problems associated with the convergence of economic, industrial sector investment and industrial growth provinces in Sumatra Island. Variables used in the model is the GDP percapita convergence by Province in Sumatra, industrial sector investment by provinces in Sumatra Island from 2000 to 2017. By using estimation result of Regression Convergence Absolut in Sumatra Island, there is statistically influence GDP percapita a year earlier industrial sector significantly affect to GDP percapita industrial sector. The regression coefficient indicates a positive direction, it is mean that the previous industrial sector GDP rise caused by increasing in GDP percapita of industrial sector. Additional variable has a positive effect on the variable investment and labor income percapita, but the industrial sector had a negative effect. The magnitude of the effect of some economic variables that have the effect of low and statistically insignificant, thus the extra few economic variables have no impact on GDP percapita climbed down the overall industrial sector. In general, labor and investment have a significant negative impact toward the GDP percapita of industrial sectors. As for the percapita income is positive but not significant effect on percapita income of the industrial sector.