The Influence of Land Registration on Regional Income per Capita in Indonesia

Aiman Akbar () and Heni Wahyuni ()
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Aiman Akbar: Master of Economics of Development Study Program, Faculty of Economics and Business, Universitas Gadjah Mada
Heni Wahyuni: Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

No 202303005, Gadjah Mada Economics Working Paper Series from Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

Abstract: This study was conducted to analyze and measure the impact of land registration on economic growth in provinces in Indonesia. The study suggests that there is a possibility of unobserved heterogeneity that may influence the outcome variable, namely geographical conditions, which include land area in each province and the number of land areas that have not been certified. Further information regarding these two factors still needs to be sought. Using panel data from 34 provinces in Indonesia for ten years (2010-2019) and a fixed effect panel method to overcome the unobserved heterogeneity bias, this study found that a 1 percent increase of land registration increases a province’s gross domestic product per capita by a significant 0.12 percent, after controlling for other factors. These findings align with previous studies that suggest that land registration influences society's welfare through increased access to financial credit.

Keywords: land registration; per capita gross domestic product; panel data method; fixed effect model; unobserved heterogeneity (search for similar items in EconPapers)
JEL-codes: C1 O13 Q24 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2023-03
New Economics Papers: this item is included in nep-agr, nep-fdg and nep-sea
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