GDP Gross Domestic Product GRDP Gross Regional Domestic Product GCI Global Competitiveness Index TFP Factor Productivity SFP Single Factor Productivity MFP Multi Factor Productivity ICT Information, Communication and Technology UNIDO United Nation Industrial Development Organization OECD Organization for Economic Cooperation and Development OLS Ordinary Square FEM Fixed Effect Method REM Random Effect Method R & D Research and Development ILO International Organization Komite Pemantauan Pelaksanaan Otonomi Daerah/ Regional Autonomy Implementation Monitoring Committee Abstract Both SFP and TFP are believed as tools to measure productivity. This means that those measurements can be used to assess economic performance. However, each measurement has its own superiority, which relies on the purposes and the availability of sources to calculate it. Indonesia’s economy which consists of 11 sectors shows a positive growth in around last 10 years. Those sectors are manufacturing sector, agriculture sector and trade sector. Among those sectors, there are several sectors having bigger share on national GDP compare to the rest. However, the magnitude of each sector share in GDP is not solely determined by the sector itself, but it also influenced by other factors. One believed as the supporting factor is infrastructure. Therefore, this will examine the role of infrastructure on the productivity in manufacturing sector in Indonesia and analyze which kind of infrastructures that highly contributes to the productivity. The paper is measuring productivity labor productivity as one form of SFP. Based on the calculation, this paper excludes the TFP calculation as the productivity measurement due to unconvincing result. To assess the role of infrastructures in productivity in the manufacturing sector in Indonesia during 2000-2009, by using a panel data set which includes all provinces, the estimation is conducted. The result shows that the best method to estimate the model is Random Effect method. Further analysis
GDP Gross Domestic Product GRDP Gross Regional Domestic Product GCI Global Competitiveness Index TFP Factor Productivity SFP Single Factor Productivity MFP Multi Factor Productivity ICT Information, Communication and Technology UNIDO United Nation Industrial Development Organization OECD Organization for Economic Cooperation and Development OLS Ordinary Square FEM Fixed Effect Method REM Random Effect Method R & D Research and Development ILO International Organization Komite Pemantauan Pelaksanaan Otonomi Daerah/ Regional Autonomy Implementation Monitoring Committee Abstract Both SFP and TFP are believed as tools to measure productivity. This means that those measurements can be used to assess economic performance. However, each measurement has its own superiority, which relies on the purposes and the availability of sources to calculate it. Indonesia’s economy which consists of 11 sectors shows a positive growth in around last 10 years. Those sectors are manufacturing sector, agriculture sector and trade sector. Among those sectors, there are several sectors having bigger share on national GDP compare to the rest. However, the magnitude of each sector share in GDP is not solely determined by the sector itself, but it also influenced by other factors. One believed as the supporting factor is infrastructure. Therefore, this will examine the role of infrastructure on the productivity in manufacturing sector in Indonesia and analyze which kind of infrastructures that highly contributes to the productivity. The paper is measuring productivity labor productivity as one form of SFP. Based on the calculation, this paper excludes the TFP calculation as the productivity measurement due to unconvincing result. To assess the role of infrastructures in productivity in the manufacturing sector in Indonesia during 2000-2009, by using a panel data set which includes all provinces, the estimation is conducted. The result shows that the best method to estimate the model is Random Effect method. Further analysis
D.A.%20Ariwanto_Infrastructure%20Role%20on%20Productivity%20in%20Manufacturing%20Sector%20in%20Indonesia%20-%20SB%201396_1544.docx