Interregional Disparities Determinants and Economic Growth in West Jawa and Banten Province

Abstract

The economy of a region portrayed through economic growth as well as one indicator to see the results of the development that has been done and is useful for determining the direction of future development. In infrastructure development, government's role as a very strategic mobilizer in supporting economic growth, anddisparityof regional became decreasing and development expected to convergence. West Java Provincial Government has developed the initial concept development and two three Metropolitan Growth Center. This concept was developed by considering the strategic position of Metropolitan Areas (Bodebek Karpur, Bandung and Cirebon) as the center of population agglomeration, and economic and social activities, as well as Growth Center (Palabuhanratu and Pangandaran) as the center of economic growth that has the potential for growth and development of the region in another areas and macro conditions in Indonesia. Policy to accelerated development of the region through increased economic growth and reduction of disparities to push economic growth, followed by the even distribution of income. Past studies have shown that the development of infrastructure such as transport infrastructure, electricity and telecommunications networks and the provision of clean water is essential in order to improve the economy in a region. Infrastructure facilities needed not only by households but also by the business community. Infrastructure improvements are expected to bring prosperity and accelerate economic growth. Areas with adequate infrastructure has a greater advantage in attracting investment into the region, causing the area will be growing faster than areas with poor infrastructure. This is due to the opening of the isolation of the area so that access to the various factors of production may be possible to open up the movement of the region's economy. The purpose of this study is: First, analyze the regional economic disparities district/ City in the province of West Java and Banten. Second, Testing the convergence between the district/ city in the province of West Java and Banten approach Gross Regional Domestic Product. Third, analyze the determinants of disparities between regions and economic growth in the Province of West Java and Banten. Based results of research on disparities between regions and the determinants of economic growth in the Province of West Java and Banten in the period 2004 to 2010 can be drawn some conclusions as follows: (1) Economic growth in the City and County in West Java and Banten from 2004 to 2010 was very volatile. The results of calculations using Williamson indeks 2004 to 2010 in the province of West Java and Banten quite high. (2) Infrastructure development in Indonesia during the period of 2004 to 2010 in general has increased. Beta convergence of GDP Banten value greater when separated with West Java during joining West Java. The half Life needed to close the gap in Banten faster than in West Java. (3) The result of disparities between regions and estimate the determinants of economic growth based on existing data indicates that the electrical and water variables influence positively the regional economic growth. Water infrastructure elasticity is greater than the elasticity of electricity infrastructure. While the road infrastructure influence negatively effect the growth of the regional economy due to the amount of good quality road length has decreased because of the growing number of vehicles does not offset by the addition of the road so that the road quickly broken. Advice can be given as follows: ( 1 ) Economic development needs to be made point of new growth areas. In the long term the infrastructure interconnecting various widely will provide better growth potential than if centralized. ( 2 ) prioritized infrastructure development to increase the number of road length because conditions are still poor transport infrastructure requires a transportation infrastructure improvement program. ( 3 ) The government should pay attention to aspects of human resource development. Because human resources is an important variable and is proven to increase economic growth and the creation of concentration of economic activity. Need to set minimum service standards and socialized education on various types and levels of education in Indonesia, which includes aspects of equity, efficiency, participation, quality and sustainability.