Convergence Human Development Index in Banten Provence.

Abstract

Neoclassical economists stated that the level poorer regions would tend to grow faster than the richer regions. This is because of the diminishing marginal returns to capital in the richer regions, as the level of capital per labor is relatively high in these regions. Which in turn will catch up convergence income (wealth). So it will happen by itself without the need for government policy. Some economists opposed this theory, such conditions never happen without any support of government policy. In fact income convergence that never actually happened, it was economies leads to divergence. Based on the theory, in this study would like to know whether the Human Development Index in Banten Provence leading to convergence or divergence during the period 1994-2009. In which the object of research include (Lebak, Pandeglang, Serang and Tangerang) Regency, (Tangerang and Cilegon) Municipal. Using panel data regression model in data analysis techniques are expected to capture the issues can not captured and explained by analysis time series and cross section. Use of the Human Development Index as the object of research because as one indicator of achievement of government's performance in human resource development framework that was introduced by UNDP in 1990. Based on these results can be concluded there was a tendency in Banten Human Development Index has led to a marked convergence with the sigma convergence and beta convergence is negative.