Proceedings of the 3rd Economics and Business International Conference, EBIC 2022, 22 September 2022, Medan, North Sumatera, Indonesia

Research Article

Economic Performance on Sumatra Island

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  • @INPROCEEDINGS{10.4108/eai.22-9-2022.2337428,
        author={Arif  Rahman and Monika  Andrasari and Sirojuzilam  Sirojuzilam},
        title={Economic Performance on Sumatra Island},
        proceedings={Proceedings of the 3rd Economics and Business International Conference, EBIC 2022, 22 September 2022, Medan, North Sumatera, Indonesia},
        publisher={EAI},
        proceedings_a={EBIC},
        year={2024},
        month={4},
        keywords={economic performance sumatra island klassen typology williamson index},
        doi={10.4108/eai.22-9-2022.2337428}
    }
    
  • Arif Rahman
    Monika Andrasari
    Sirojuzilam Sirojuzilam
    Year: 2024
    Economic Performance on Sumatra Island
    EBIC
    EAI
    DOI: 10.4108/eai.22-9-2022.2337428
Arif Rahman1,*, Monika Andrasari1, Sirojuzilam Sirojuzilam1
  • 1: Universitas Sumatera Utara
*Contact email: arifrahman8747@gmail.com

Abstract

This study aims to analyze the economic performance between provinces in Sumatra Island from 2011 to 2020. Economic performance is proxied into real income per capita and economic growth. The analytical method used is the Klassen typology, Williamson index, and historical convergence. Data processing with Klassen Typology shows that there is only one province in quadrant 1 and quadrant 2, namely Riau Islands Province and Riau Province. Most provinces belong to the potential quadrant. The results of the Williamson index illustrate a decrease in real GDP per capita inequality between regions on the island of Sumatra. This situation also reflects the emergence of the effect of economic convergence between provinces, where a slowdown in economic performance in one region is followed by economic development in other regions. This conclusion is strengthened by the historical convergence method, which shows a negative slope line. On the other hand, the provinces of Riau and Riau Islands, which are classified as rich, experienced a significant slowdown in growth. This line indicates that most of the relatively poorer provinces have high real per capita income growth performance, except for Aceh. On the other hand, the provinces of Riau and Riau Islands, which are classified as rich, experienced a significant slowdown in growth. This line indicates that most of the relatively poorer provinces have high real per capita income growth performance, except for Aceh.