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Verifying of β-convergence for choosen regions of Indonesia
Last modified: 2016-10-19
Abstract
The convergence in the economy means the process of balancing disparities chosen indicators of homogeneous economic groups. In this paper we verifying convergence by Least Squares Method for 11 chosen regions of Indonesia. Used variables are the real GDP per capita and average salary per capita in every chosen region of Indonesia between 20012 and 2015. We create dependence between the growth of GDP per capita and logarithm of GDP per capita in 2012. For completely explanation of model and calculation of consistent, minimal estimator we use dummies and create a structural parameter, which eliminate shocks and possible disparities between regions.