Analisis Total Factor Productivity Sektor Industri Beberapa Wilayah di Indonesia

Abstract

Manufacture industry needs technology in production process to create a high productivity with efficient input. Technology availability could be measured by Total Factor Productivity (TFP). The study aims are: (1) analyze TFP of manufacture industry in some regions in Indonesia for period before and after 1998 crisis; (2) analyze factors influencing TFP of manufacture industry in some regions in Indonesia for period 1986-2010. TFP is analyzed using Ordinary Least Square (OLS) method, while factors influencing it is analyzed using Error Correction Model (ECM). The results show that most industries in Java have a positive TFP, while industries outer Java has a negative TFP. Before crisis, TFP is negative for industries outer Java remains negative. While after crisis, most industries in Java has a positive TFP, but industries outer Java remains negative. Factors influencing TFP of manufacture industry in the long term for industries in Java is import volume, while for industries outer Java is industry GRDP and FDI. In the short term, TFP of manufacture industries in Java is influenced by FDI, while industries outer Java is influenced by industry GRDP, FDI, and export volume.