The Analysis of Absolute Convergency of Human Development Inter Provinces in Indonesia

Ana Syukriyah

doi:10.15294/edaj.v5i4.22173

Abstract

The purpose of this study was to identify the sigma and absolute beta convergence of the Human Development Index (HDI) inter provinces in Indonesia, and identify the speed of absolute beta convergence. This study used a quantitative analysis with tool used is regression panel data with fixed effect model Generalize Least Square method (GLS). The results shows that there happen sigma convergence of HDI and absolute beta convergence of HDI inter provinces in Indonesia. The speed of absolute convergence is equal to 0.807 percent annually.

Highlights

The Human Development Index (HDI) is a composite indicator developed by UNDP in order to assess development success
This study aims to identify the sigma convergence and absolute beta of human development among provinces in Indonesia and identify the absolute beta convergence rate
The concept of sigma convergence explains that human development between provinces in Indonesia is convergence if it decreases over time

Summary

Introduction

The Human Development Index (HDI) is a composite indicator developed by UNDP in order to assess development success. HDI includes three basic dimensions of welfare: health, education and decent living standards. HDI does not describe human development as a whole, yet it is a better measurement than income. One of the most serious disadvantages of human development index (HDI) is that it does not consider the distribution of human development within a country (Harttgen, 2012). Indonesia is one of the developing countries with HDI of 57.2 in 2005 and increased to 68.4 in 2013 (UNDP, 2014). Indonesia’s HDI is the accumulation of total HDI value of every province in Indonesia. The diversity of potential natural and human resources between regions makes the achievement of HDI in each province varies (Central Bureau of Statistics, 2013)

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Conclusion