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Does Efficiency Convergence of Economy Promote Total Factor Productivity? A Case of Indonesia
Rudi Purwono,Mohammad Zeqi Yasin 중앙대학교 경제연구소 2020 Journal of Economic Development Vol.45 No.4
This study investigates the relation between the efficiency converging moment and Total Factor Productivity of Indonesia’s economy. The intriguing finding is that although efficiency convergence was speeding towards the frontier as well as the catching-up patterns, the finding showed a negative productivity at a nearly zero level. Particularly, the negative productivities were mostly exhibited by Indonesia’s eastern regions. Technical Change that experienced a statistical downturn seemed to have discouraged this productivity. Variables such as investment might have played a significant role in this case. This study recommends making regulations on investment spending in each province, so that regional productivities can be improved.
Nadia Benali,Mohammad Zeqi Yasin 중앙대학교 경제연구소 2020 Journal of Economic Development Vol.45 No.4
This document examines the nexus between natural disasters (DMS), education (EDU), information and communication technologies (ICT) and economic growth (GDP per capita) in developed and developing countries using panel data set from 1990 to 2017. The autoregressive distributed lag (ARDL) bounds testing approach and Granger causality test was used. Firstly, the ARDL estimation suggests a positive and statistical significant relationship between education, internet users and mobile cellular telephone and GDP per capita in both the short- and long-term. Natural disasters have a negative effect on economic growth and education. The result indicates that internet users and mobile cellular telephone has a positive effect on natural disasters and education. Secondly, Granger causality reveals that there is bidirectional relationship among education and GDP per capita. Results show a unidirectional from internet users, mobile cellular telephone to natural disaster. In addition, there is a unidirectional causal relationship from natural disaster to GDP per capita in developing country, but this result is unobservable in developed country.
Do Infrastructures Influence the Efficiency Convergence of the Indonesian Economy?
Rudi Purwono,M. Khoerul Mubin,Mohammad Zeqi Yasin 서울대학교 경제연구소 2018 Seoul journal of economics Vol.31 No.3
In the last 10 years, Indonesia has set its infrastructure development to support the economy. Infrastructure, as the vital part of development, contributes to economic performance proxied by technical efficiency. This research aims to examine the role of infrastructure (water, electricity, and roads) toward the convergence of technical efficiency. Data from 33 provinces of Indonesia for the period of 2008–2015 were analyzed using stochastic frontier analysis (SFA) and generalized method of moments (GMM). Results show that technical efficiency converged during the period of interest. Further investigation suggests that water, electricity, and roads exert an important influence on the emergence of efficiency growth and its convergence.