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Abstract:
This study examines whether or not there is a conditional convergence of per capita income in Gunungkidul Regency. The calculation of conditional convergence is carried out by including the influence of control variables which are expected to affect the steady-state conditions of each district. This research uses labor productivity and the working-age population as control variables. The Central Bureau of Statistics publishes the research data. The dynamic panel regression analysis method is used in this study. The results showed that there was a convergence of per capita income across districts in Gunungkidul Regency. The poor district will tend to grow faster than rich ones so that all economies will eventually converge in terms of per capita income. Therefore, the income gaps across districts will disappear. An increase in worker productivity and the working-age population cause an increase in the gross regional domestic product (GRDP) and support process of per capita income convergence across districts.
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