Examining the Convergence of Human Development using Sigma Convergence Approach to Panel Data Analysis

Abstract

A special autonomy policy was implemented in Aceh in 2006, which differed in managing fiscal transfers from the central government. To this end, we examined the convergence of human development in districts/cities for thirteen years (period 2008-2020) as a form of development evaluation from the implementation of special autonomy. Using a sigma convergence approach to panel data sets sourced from the Central Bureau of Statistics (BPS), this study found a slow year-on-year movement of decreasing human development disparities. On the contrary, it can be discovered that solid evidence of absolute convergence in the 2011-2020 period, despite the differences between the 2008-2020 period, was applied. In line with these discoveries, it will take over a decade to achieve a steady state of living standards, equalization, and quality of human development between districts/cities. It could be the basis for policymakers to maintain a sustainable sense of special autonomy.