Causality analysis on the relationship of regional economic development in Central Java Province

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Lesta Karolina Br. Sebayang, Bambang Prishardoyo, Yozy Aulia

2017 Advanced Science Letters Vol. 23 Issue 8 Article Cited by 0 Quartile

Abstract

Development planning is a multidimensional effort performed by public institutions to direct regional development policies in regard to strengths and weaknesses of a region. Regional development may be adjusted by local governments due to potential development of each region. The acceleration of regional economic growth through GRDP indicator may be achieved due to the availability of infrastructures. Good economic growth performance may encourage infrastructure development, especially road additions. This paper applied Granger causality analysis. Based on the projection results, it shows that GRDP level, total population, and the number of infrastructures have annual tendency to increase until 2015. This indicates that the economic conditions in Central Java experiences increases. © 2017 American Scientific Publishers. All rights reserved.

Affiliations

State University of Semarang, Semarang, 50229, Indonesia