{"title":"Structural Change and Regional Economic Growth in Indonesia","authors":"A. Andriansyah, Asep Nurwanda, Bakhtiar Rifai","doi":"10.1080/00074918.2021.1914320","DOIUrl":null,"url":null,"abstract":"This paper investigates the relationship between structural change and regional economic growth in Indonesia. We utilise the shift-share method for 30 provinces over the period 2005–18 as a measure of structural change. We demonstrate that structural change has occurred across provinces, even though it is slowing towards an agricultural–services transition. By employing panel data models, this study shows that structural change is a significant determinant of growth. Structural change matters for growth if there is an increase in productivity within sectors. This study is unable to show that the movement of labour across sectors leads to higher economic growth. However, the increase in productivity within sectors has more impact on regional growth on a longer-term basis.","PeriodicalId":46063,"journal":{"name":"Bulletin of Indonesian Economic Studies","volume":"59 1","pages":"91 - 117"},"PeriodicalIF":2.0000,"publicationDate":"2021-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/00074918.2021.1914320","citationCount":"7","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Bulletin of Indonesian Economic Studies","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1080/00074918.2021.1914320","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 7
Abstract
This paper investigates the relationship between structural change and regional economic growth in Indonesia. We utilise the shift-share method for 30 provinces over the period 2005–18 as a measure of structural change. We demonstrate that structural change has occurred across provinces, even though it is slowing towards an agricultural–services transition. By employing panel data models, this study shows that structural change is a significant determinant of growth. Structural change matters for growth if there is an increase in productivity within sectors. This study is unable to show that the movement of labour across sectors leads to higher economic growth. However, the increase in productivity within sectors has more impact on regional growth on a longer-term basis.
期刊介绍:
The Bulletin of Indonesian Economic Studies, a peer-reviewed journal published by the Indonesia Project at The Australian National University"s College of Asia and the Pacific, fills a significant void by providing a well respected outlet for high-quality research on any and all matters pertaining to the Indonesian economy, and touching on closely related fields such as law, the environment, government and politics, demography, education and health. In doing so, it has played an important role in helping the world, and Indonesians themselves, to understand Indonesia.