The convergence analysis in Central Java Province (an approach for unconditional and conditional)

Abstract

The aims of this paper wants to analyse the development convergence between regions in Central Java Province. We used the annual data from 2010 until 2016. The regression result show that the absolute convergence have negative sign, it indicate that the poor region could grow faster that the rich region. In other words, there is a possibility of convergence between regions in Central Java Province. From our results, we calculate the speed of convergence among this period, the value amount of 0.007 and 1.053 percent per year, with the implication of the half of life convergence is 66 - 95 years. We suggest that the provincial government of Central Java can prioritize the development programs with focusing on the under-developed regency. This program hoped to reduce income disparities then it will be one of the efforts to reach convergence amongst cities / regencies in Central Java Province.