Assessment of local economic development and its factors to improve welfare in the several regions in Indonesia

Abstract

This paper has developed a model in assessing local economic development performance by utilizing primary data collected from 3 regions in Indonesia using a participatory approach of 304 respondents in Singkawang, Bau-bau, and Kupang. It is observed that to achieve the local performance model, and divided by two different models. First is the human resource, infrastructure, social capital, and financial capital that positively impact entrepreneurial strategy. While institutions, technology, local government, and central government have no impact on entrepreneurial strategy. Second is entrepreneurial strategy has a positive impact on local economic development (local performance). Findings also revealed that all impact is positive, aligning with the existing literature of local economic development in developing countries.