Abstract

West Kalimantan is one of the provinces in Indonesia that has an important role to produce palm oil, rubber and also orange. This research attempted to evaluate the relationship between the three crucial commodities and the prosperity of inhabitants at six districts in the province namely Bengkayang, Ketapang, Landak, Sambas, Sintang, and Sanggau. For this case, the prosperity of the community at the six districts is measured by gross regional domestic product at 2010 constant market prices (GDP). This research was conducted by panel regression that chooses the best model among common effect model, fixed effect model, and random effect model based on the results of Chow Test, Hausman Test, and Lagrange Multiplier Test. According to the result of analysis, it can be concluded that fixed effect model with adjusted determination-coefficient 0.96 is the best model to evaluate this case. Moreover, the model also deduced that only palm oil production that give contribution to GDP of the six districts.

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