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Abstract

Indonesia has been still experiencing regional economic disparity problems, including in labour productivity. This study employs dynamic panel approach to analyze convergence and to identify determinants of regional labour productivity during the period of 1987-2011. The System Generalized Method of Moments (Sys-GMM) estimation results show that regional convergence process occurs with speed of convergence of 0.06518 per year. Physical capital stock, human capital stock, total trade, and real wage give positive impacts. Therefore, government should prioritize in overcoming labour productivity disparity in Eastern Indonesia in which are more unequal than in Western Indonesia where interventions should be greater for provinces with lower labour productivity.

Bahasa Abstract

Indonesia masih mengalami masalah terkait dengan disparitas perekonomian regional, termasuk dalam hal produktivitas tenaga kerja. Studi ini menggunakan pendekatan panel dinamis untuk menganalisis konvergensi dan mengidentifikasi determinan produktivitas tenaga kerja regional selama periode 1987-2011. Model estimasi System Generalized Method of Moments (Sys-GMM) menunjukkan bahwa proses konvergensi regional terjadi dengan kecepatan konvergensi 0,06518 per tahun. Stok modal fisik, stok modal manusia, total perdagangan, dan upah riil ditemukan memberikan pengaruh positif. Pemerintah harus lebih memprioritaskan untuk mengatasi masalah disparitas produktivitas tenaga kerja di Kawasan Timur Indonesia (KTI) yang lebih timpang dibandingkan Kawasan Barat Indonesia (KBI) di mana intervensi harus lebih fokus terhadap provinsi-provinsi dengan tingkat produktivitas tenaga kerja yang lebih rendah.

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