EconPapers    
Economics at your fingertips  
 

Structural Change and Regional Economic Growth in Indonesia

Andriansyah Andriansyah (), Asep Nurwanda and Bakhtiar Rifai

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the relationship between structural change and regional economic growth in Indonesia. We utilize several measures of structural change, i.e. structural change index, norm absolute value index, shift-share method, and effective structural change index, for 30 provinces over the period 2005-2018. We show that the structural change has occurred across provinces, even though it is slowing, towards an agricultural-services transition. By employing dynamic panel data models, this study shows that structural change is a significant determinant of growth. However, structural change matters for growth only if there is an increase in productivity, not only a movement of labor across sectors. An improvement in productivity within sectors and a movement of labors to other sectors with better productivity lead to a better economic development.

Keywords: Structural Change; Regional Growth; Indonesia; Productivity (search for similar items in EconPapers)
JEL-codes: L16 O40 R11 (search for similar items in EconPapers)
Date: 2020-08-07
New Economics Papers: this item is included in nep-cwa, nep-fdg, nep-geo, nep-sea, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/105177/1/MPRA_paper_105177.pdf original version (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:pra:mprapa:105177

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2022-06-28
Handle: RePEc:pra:mprapa:105177