DOES SOCIAL CAPITAL AFFECT THE CONVERGENCE OF ECONOMIC GROWTH IN INDONESIA

Nasir Ibrahim, Faculty of Economics, Universitas Serambi Mekkah, Indonesia
Said Muhammad, Universitas Syiah Kuala, Indonesia
Sirojuzilam Hasyim, Universitas Sumatra Utara, Indonesia
Abd Jamal, Syiah Kuala University, Indonesia

Published in

JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS
Volume 19, Issue 1, p68-76, March 2019

ABSTRACT

This study aims to analyze the factors that influence the convergence of economic growth between provinces in Indonesia, one of the factors that increase social capital and analyzes the convergence of convergence s (Sigma), a convergence of convergence ß-absolute and convergence of convergence ß-conditional. The data used in this study are provincial secondary data in Indonesia 33 provinces, in the period of 2010 until 2016 sourced from the Indonesian Central Bureau of Statistics, the model used was panel regression analysis using Fixed Effect Model (REM). Estimation results show on economic growth, both convergence s (sigma), ß-absolute also ß-conditional, and the Social Economy has a positive influence on economic growth in Indonesia.

Keywords

Social Capital, Convergence.


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