Income disparity in Java Island: Toward divergence?

WARDONO, Stefanus Anggoro Krisanto, Prof. Yoichi Okita, Ph.D

2010 | Tesis | S2 Magister Ekonomika Pembangunan

This study tries to examine growth in regencies and municipalities level in Java Island whether will be convergence or not. The disparity exists among regencies and municipalities. Decentralization that started in 2000 as an important moment in Indonesia and widely believed by its proponents as a way to bring promising benefits, should be have good impacts on growth. Examine the data in regencies and municipalities level year 1990 – 2006 this study tries to answer those questions empirically. The main finding is there is no clear absolute convergence for this study period. It be clearer when put some variable on the model, and the human capital that represented by educational attainment is the important factor. That’s mean there is conditional convergence on year 1990– 2006. This study cannot find any evidences about decentralization effect on convergence because very short period. The deeper study may be needed to find out the answer.

Kata Kunci : Growth,Disparity,Convergence,Decentralization,Java