Analisis Pertumbuhan Ekonomi 35 Kabupaten/Kota Di Jawa Tengah: Aplikasi Model Pertumbuhan Solow

Abstract

ABSTRACT Central Java has middle position of local Gross Domestic Product (GDP) ifranked with the other provinces in Java Island, but it has lowest per capita GDP. The aim of this research is to analyze factors which can influence local economic growth of 35 regencies/municipalities in Central Java, through the application of Neoclassical Growth Theory developed by Solow. Econometric estimation is conducted on a panel of 35 regencies/ municipalities in Central Java, over the period 2005-2007. Independent variables are capital stock a year before, government investment, worked labor, human resources quality, and dummy variables. While dependent variable is constant price GDP based on year 2000. Statistical tests in this research are t-test, F-test, and "goodness of fit" test, while classical linear regression model assumptions tests are multicollinearity test, heteroscedasticity test, autocorrelation test, and normality test. The major finding in this research as follows: the role of capital, worked labor, and human resources quality has been significant positive effect on local regional economic growth, while government investment has no significant but positive effect on regional economic growth. Based on these findings, policy recommendation to promote economic growth is promote human resources quality by provide health care and education opportunity as a necessary condition. Quantity without quality is nonsense. Meanwhile, the sufficient requirement is local government should provide infrastructures which is able to attract new private investments, beside provide public goods, to gain higher economic growth. Keywords: Neoclassical Growth Theory, Solow Growth Theory Human Resources Quality, Human Development Index (HDI), Economic Growth, Panel Data, Fixed Effect