Analysis of Determinants of Village-City Migration and Economic Growth Between Provinces in Indonesia

Abstract

This study aims to explain the relationship between rural-urban migration and economic growth, further explaining the effect of regional minimum wages on rural-urban migration, labor force participation rates on rural-urban migration, government spending on economic growth, and human capital on economic growth. between provinces in Indonesia. The data used are panel data (cross section and time series) consisting of 34 provinces in Indonesia during the 2015 to 2018 period, the method used is the 2SLS (two stages least square) simultaneous equation model. The results of the study found that economic growth, regional minimum wages, and labor force participation rates have a positive and significant effect on rural-urban migration, then government spending, human capital, and rural-urban migration have a positive and significant impact on economic growth between provinces in Indonesia.