Convergence in Price Level among East Java’s Regions

Rifai Afin ()
Additional contact information
Rifai Afin: Regional Economic Development Institute (REDI)

Bulletin of Monetary Economics and Banking, 2006, vol. 8, issue 4, 455-470

Abstract: Penelitian ini berupaya menjelaskan konvergensi tingkat harga di wilayah Jawa Timur. Analisa konvergensi harga ini dilakukan dengan dua metode, pertama dengan metode regresi cross sectional, dan kedua dengan mempergunakan prosedur Augmented Dickey Fuller. Selain itu pengembangan metode dilakukan dengan mempergunakan teknik analisa panel yang dikembangkan oleh Levin dan Lin (1992, 1993). Hasil pengujian untuk selang periode 1983-2003 menunjukkan bahwa konvergensi inflasi tidak terjadi. Untuk periodel 1983-1993 dan 1994-2003, hasil pengujian menunjukkan arah yang sesuai dengan teori, dan signifikan. However, test using data from 1983-2003 show that inflation convergence across East Java Regions does not occur consistently over time. Separately period, 1983-1993 and 1994-2003 we found right sign and significant in total period but in small sample period, 1983-1993 and 1994-2003 we also found the right sign but insignificant. In the context of development of monetary policy, the evidence suggest if the convergence in national data of price level can bring monetary policy becoming similar across regions.

Keywords: Regional; price level; convergence; panel unit root test (search for similar items in EconPapers)
JEL-codes: C23 E31 R11 R51 R58 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=1434&context=bmeb (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:8:y:2006:i:4b:p:455-470

DOI: 10.21098/bemp.v8i4.145

Access Statistics for this article

Bulletin of Monetary Economics and Banking is currently edited by Paresh Narayan

More articles in Bulletin of Monetary Economics and Banking from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().