Determinan Pertumbuhan Ekonomi Inklusif Di Provinsi Jawa Tengah
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inclusive economic growth, inequality, labor absorption, panel data, poverty
Abstract
The economy of Central Java Province experienced growth between 2018 and 2024, but the Gini index shows
moderate inequality and an increasing trend. This study aims to analyze the inclusiveness of economic growth in
Central Java and the factors influencing inclusive economic growth. The analysis uses the First Difference
Generalized Method of Moments (FD-GMM) regression model and the Fixed Effect Model. The unit of analysis
is 35 regencies/cities in Central Java during the 2021-2024 period. Data were obtained from BPS and Bappenas.
The results show that economic growth in Central Java Province is not yet inclusive as seen from poverty and
inequality indicators, but in labor absorption it is inclusive. Inclusive economic growth in reducing poverty is
influenced by the inclusiveness of economic growth in the previous year, per capita income, school enrollment
rates, and investment. Meanwhile, inclusive economic growth in absorbing labor is influenced by the inclusiveness
of economic growth in the previous year, wage levels, GDP, and labor absorption. Meanwhile, inclusive economic
growth in reducing inequality is influenced by investment, per capita income, and school enrollment rates. To
increase the inclusiveness of economic growth, local governments need to focus on increasing school enrollment
rates, improving investment climate and wage levels.
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