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The Influence of Land Registration on Regional Income per Capita in Indonesia

Author

Listed:
  • Aiman Akbar

    (Master of Economics of Development Study Program, Faculty of Economics and Business, Universitas Gadjah Mada)

  • Heni Wahyuni

    (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)

Abstract

This study was conducted to analyze and measure the impact of land registration on economic growth in provinces in Indonesia. The study suggests that there is a possibility of unobserved heterogeneity that may influence the outcome variable, namely geographical conditions, which include land area in each province and the number of land areas that have not been certified. Further information regarding these two factors still needs to be sought. Using panel data from 34 provinces in Indonesia for ten years (2010-2019) and a fixed effect panel method to overcome the unobserved heterogeneity bias, this study found that a 1 percent increase of land registration increases a province’s gross domestic product per capita by a significant 0.12 percent, after controlling for other factors. These findings align with previous studies that suggest that land registration influences society's welfare through increased access to financial credit.

Suggested Citation

  • Aiman Akbar & Heni Wahyuni, 2023. "The Influence of Land Registration on Regional Income per Capita in Indonesia," Gadjah Mada Economics Working Paper Series 202303005, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada.
    • Handle: RePEc:gme:wpaper:202303005
    as

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    File URL: https://econworkingpaper.feb.ugm.ac.id/download/working_paper/202303005.pdf
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    References listed on IDEAS

    as
    1. Muhammad Shahbaz & Rashid Sbia & Helmi Hamdi & Ilhan Ozturk, 2014. "Economic growth, electricity consumption, urbanization and environmental degradation relationship in United Arab Emirates," Post-Print halshs-01902764, HAL.
    2. Narayan, Paresh Kumar & Smyth, Russell, 2005. "Electricity consumption, employment and real income in Australia evidence from multivariate Granger causality tests," Energy Policy, Elsevier, vol. 33(9), pages 1109-1116, June.
    3. James C. MacGee, 2006. "Land Titles, Credit Markets and Wealth Distributions," WIDER Working Paper Series RP2006-150, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    land registration; per capita gross domestic product; panel data method; fixed effect model; unobserved heterogeneity;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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