Paper Title :Determinant of Economic Growth in Indonesia: Panel VECM Approach

Author :Agus Tri Basuki

Article Citation :Agus Tri Basuki , (2018 ) " Determinant of Economic Growth in Indonesia: Panel VECM Approach " , International Journal of Management and Applied Science (IJMAS) , pp. 7-11, Volume-4,Issue-6

Abstract : This study aims to analyze the composition of local government spending (education, health, marine and fisheries, agriculture, and general allocation funds), the number of poor people, and foreign direct investment. This study uses data from 18 provinces in Indonesia from 2010 to 2015. The analysis method used in this research is dynamic panel regression (dynamic VECM). Long-term analysis results are all variables affecting economic growth, except government spending on agriculture. In short-term relations, local government budget for health in lag 2, government budget for marine and fishery in lag 1 and lag 2, have a positive influence on gross regional domestic product. While foreign direct investment in lag 2, and total poverty in lag 1 and 2 have a negative effect on grossrfdf domestic regional product. Keywords - Local Government Expenditures, Dynamic VECM And Gross Domestic Regional Bruto.

Type : Research paper

Published : Volume-4,Issue-6

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