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Pengaruh Penggunaan Variabel Demografi dalam Model Pertumbuhan Ekonomi: Kasus 25 Propinsi di Indonesia, 1983-1992

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  • Ira Setiati

Abstract

The role of goveriiuient sector in Indonesia is citanged. Nowadays, the government's role is not intended to substitute the market mechanism, but to support the efficiency in the market mechanism itself. Regarding to this issue, it is now becoming more important to increase the efficiency in the government sector, since inefficiency occurred in tliis sector would result in a highly cost economy, which in turn coidd discourage nexv investments. Based on the production function approach, tlie study shoius that the number as well as the density of population (called demographic variables) could bring economies of scale that can support efficiency in the government sector. Besides, the study also indicates that the government sector (through government expenditure) has a positive impact to the economic growth in Indonesia.

Suggested Citation

  • Ira Setiati, 1996. "Pengaruh Penggunaan Variabel Demografi dalam Model Pertumbuhan Ekonomi: Kasus 25 Propinsi di Indonesia, 1983-1992," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 44, pages 121-161, June.
    • Handle: RePEc:lpe:efijnl:199608
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