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Scirj Volume V, Issue XII, December 2017 Edition
ISSN: 2201-2796

The Determinants of Regional Competitiveness in Indonesia

Ridwan, Basri Hasanuddin, Muhammad Amri, Madris

Abstract: This study aims to map the competitiveness of regions and to examine the influence of health, education, infrastructure, institutional, and information and communication technology (ICT) on competitiveness both directly and through government spending and private investment. The data used are cross section 33 provinces in Indonesia and time series 2010-2016. Standardized scores were used to calculate competitiveness scores based on four indicators: productivity, GRDP per capita, employment and household consumption expenditure per capita. The simultaneous equation model is used to analyze the effect of the driven factors on competitiveness. The study indicates that provinces with high competitiveness are dominated by provinces based on natural resources and / or provinces based on industry and services sectors. The driven factors that have a significant effect on competitiveness are the level of labor education, the availability of infrastructure and ICT. Health and institutions factors have not effectively contributed directly to improving competitiveness. The results of this study require the workforce to improve the quality of education and skills in order to contribute to improve productivity and employment. The availability of infrastructure and ICTs is important to attract investments that ultimately drive increased competitiveness.

Reference this Paper: The Determinants of Regional Competitiveness in Indonesia by Ridwan, Basri Hasanuddin, Muhammad Amri, Madris published at: "Scientific Research Journal (Scirj), Volume V, Issue XII, December 2017 Edition, Page 48-55 ".

Search Terms: regional competitiveness, standardized score, simultaneous equation model, human capital, ICT

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