CONVERGENCE IN PRICE LEVEL AMONG EAST JAVA’S REGIONS
Abstract
Penelitian ini berupaya menjelaskan konvergensi tingkat harga di wilayah Jawa Timur. Analisa konvergensi harga ini dilakukan dengan dua metode, pertama dengan regresi cross sectional, dan kedua dengan menggunakan prosedur Augmented Dickey Fuller. Selain itu pengembangan metode dilakukan dengan menggunakan teknik analisa panel yang dikembangkan oleh Levin dan Lin (1992, 1993).
Hasil pengujian untuk selang periode 1983-2003 menunjukkan bahwa konvergensi inflasi tidak terjadi. Untuk periode 1983-1993 dan 1994-2003, hasil pengujian menujukkan arah yang sesuai dengan teori, dan signifikan.
However, test using data from 1983 – 2003 show that inflation convergence across East Java Regions does not occur consistently over time. Separately period, 1983 – 1993 and 1994 – 2003 we founf right sign and significant in total period but in small sample periode, 1983 – 1993 and 1994 – 2003 we also found the right sign but insignificant. In the context of development of monetary policy, the evidence suggest if the convergence in national data of price level can bring monetary policy becoming similar across regions.
Keywords: regional, price level, convergence, panel unit root test
JEL : C23, E31, R11, R51, R58
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