Human Development Convergence and the Impact of Funds Transfer to Regions: A Dynamic Panel Data Approach

• 발행기관: 한국유통과학회
• 저자명: Rah Adi Fahmi GINANJAR Vadilla Mutia ZAHARA Stannia Cahaya SUCI Indra SUHENDRA
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.12, 593~604쪽, 전체 12쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.12.30

영문 초록

This study analyzes human development convergence and the impact of funds transfer to the regions using σ and β-convergence analysis method. Observations were made in all Indonesia’s provinces in the period 2010-2019. The coefficient of variation calculation shows a dispersion in the inequality of human development, which means that convergence occurred. This is also documented by the clustering analysis results developed in the study. The results are in line with the hypothesis of neoclassical theory, which shows the tendency for provinces with lower human development levels to grow relatively faster. The dynamic panel data approach with the GMM model shows that a model built with explanatory variables for transfer of funds to regions may lead to the process of convergence of human development – 2.21% per year or 31 years to cover the half-life of convergence. This is a consequence of the Special Allocation Fund and the Village Fund, which positively impact the convergence process, and the General Allocation Fund and the Revenue Sharing Fund with negative signs slowing the convergence process. This evidence opens opportunities to review the justification of the weighting component in determining the amount of funds transferred to the region to accelerate the convergence process of human development.

목차

1. Introduction

2. Literature Review

3. Research Methods and Materials

4. Results and Discussion

5. Conclusions

References

키워드

Human Development Convergence Inequality Fiscal Decentralization GMM