| dc.description.abstract | Sustainable development is the goal of a country and human capital is one of
the important factors for achieving sustainable economic growth. East Java as one of
the major provinces with high economic growth was central to the eastern region of
Indonesia that has a fairly high economic significance, which contributed 14. 71 % to
the national Gross Domestic Product. This study aims to analyze the main factors
forming regional economic growth and convergence in a District in East Java 2004-
2012 by considering spatial aspects. Analysis of convergence is conducted by using
the sigma convergence and beta convergence. Dynamic panel model is used in this
study in which the value of lag of the dependent variable becomes part of the
model.The method of analysis in this study uses spatial econometric analysis tools
least squar panels, as well asthe system Generalized Method of Moment (SYS-GMM).
Analysis of the spatial econometrics in this study uses thesystemGMM due to the
emergence of endogeneity problems in the growth model and in particular on the
dynamic panel model.Human capital which consists of education (the average length
of school) and health (life expectancy) becomes one of the main factors affecting
economic growth.In addition. the spillover effects are shown from the interaction
between regions so that the mobilization of production factors occured.
Research results with sigma convergence has been converging in the district in
East Java.Non-spatial approach in the form of absolute and conditional beta
convergence and spatial approach withsystemGMM prove that there is no
convergence in the District in East Java.Spil lover effect of the determining factors of
economic growth, especially human capital to economic growth in East Java is not
shown to occur.The existence of abundancefactor that occur in a spatial model of this
study is proved exist in the population abundance variables. | en_US |
