Convergence and Potential Economic Development in the Special Region of Yogyakarta

Yustirania Septiani

doi:10.20884/1.erjpe.2019.14.1.1260

Abstract

This study aims to determine whether there is a lag between a region with another, to determine whether the regions with low income will be able to catch up with regions with higher income. The objectives of this study are to analyze the convergence that might occur in Yogyakarta and analyze the potential economic sectors in economic development in Yogyakarta. This study used panel secondary data, the data were obtained from 5 regions in Yogyakarta from 2010-2015. The methods were panel data regression, location quotient, dynamic location quotient, and shift share. The result showed that there was no convergence, but there was divergence, and competitive and specialized sectors in regencies / cities in Yogyakarta were agricultural, forestry, and fishing sector, mining and excavation sector, processing industry sector, procurement of electricity and gas sector, water supply, waste management and recycling sector, construction sector, and transportation and trade sector.Keywords: Convergence, Potential Sector, Economic Development.

Highlights

Growth and equity are two poles of development strategies that are often trade off
The policy choice generally falls on the policy of triggering high economic growth in the hope that equitable distribution of development outcomes will eventually be achieved through a trickle down effect
This means that the process of equalizing income will automatically occur after high economic growth occurs

Summary

Introduction

Growth and equity are two poles of development strategies that are often trade off. This means that the development focusing on aspect of economic growth is likely to “sacrifice” the aspect of equity, and vice versa. The policy choice generally falls on the policy of triggering high economic growth in the hope that equitable distribution of development outcomes will eventually be achieved through a trickle down effect. This means that the process of equalizing income will automatically occur after high economic growth occurs. There is a widening gap between the rich and the poor along with the rapid economic growth (Lincolin, 2010)

Objectives

Methods

Conclusion