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Abstract

This study observes that previous research on the relationship between democracy and economic growth has produced ambiguous outcomes. The aim of this paper is to estimate the relationship between democracy and regional economic growth in Indonesia. Using a fixed effects model with 374 provincial-level observations, the results indicate a statistically significant and positive relationship between democracy and regional economic growth in Indonesia.

Bahasa Abstract

Studi ini mengamati bahwa hubungan antara demokrasi dan pertumbuhan ekonomi masih menunjukkan hasil yang ambigu dalam berbagai studi terdahulu. Tujuan dari penelitian ini adalah untuk mengestimasi hubungan antara tingkat demokrasi dan pertumbuhan ekonomi di tingkat daerah di Indonesia. Penelitian ini menggunakan model fixed effect dengan 374 observasi pada level provinsi. Hasil estimasi menunjukkan bahwa hubungan antara demokrasi dan pertumbuhan ekonomi daerah di Indonesia bersifat positif dan signifikan.

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