An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method

Septia Devi Prihastuti Yasmirullah; Nur Iriawan; Feronika Rosalinda Sipayung

doi:10.1063/1.5012264

An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method

Septia Devi Prihastuti Yasmirullah^*
, Nur Iriawan
, Feronika Rosalinda Sipayung

^*Corresponding author for this work

Institut Teknologi Sepuluh Nopember

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

The success of regional economic establishment could be measured by economic growth. Since the Act No. 32 of 2004 has been implemented, unbalance economic among the regency in Indonesia is increasing. This condition is contrary different with the government goal to build society welfare through the economic activity development in each region. This research aims to examine economic growth through the distribution of bank credits to each Indonesia's regency. The data analyzed in this research is hierarchically structured data which follow normal distribution in first level. Two modeling approaches are employed in this research, a global-one level Bayesian approach and two-level hierarchical Bayesian approach. The result shows that hierarchical Bayesian has succeeded to demonstrate a better estimation than a global-one level Bayesian. It proves that the different economic growth in each province is significantly influenced by the variations of micro level characteristics in each province. These variations are significantly affected by cities and province characteristics in second level.

Original language	English
Title of host publication	Proceedings of the 13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017
Editors	Haslinda Ibrahim, Nazrina Aziz, Mohd Kamal Mohd Nawawi, Azizah Mohd Rohni, Jafri Zulkepli
Publisher	American Institute of Physics Inc.
ISBN (Electronic)	9780735415959
DOIs	https://doi.org/10.1063/1.5012264
Publication status	Published - 22 Nov 2017
Event	13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017 - Kedah, Malaysia Duration: 4 Dec 2017 → 7 Dec 2017

Publication series

Name	AIP Conference Proceedings
Volume	1905
ISSN (Print)	0094-243X
ISSN (Electronic)	1551-7616

Conference

Conference	13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017
Country/Territory	Malaysia
City	Kedah
Period	4/12/17 → 7/12/17

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

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10.1063/1.5012264

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Yasmirullah, S. D. P., Iriawan, N., & Sipayung, F. R. (2017). An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method. In H. Ibrahim, N. Aziz, M. K. M. Nawawi, A. M. Rohni, & J. Zulkepli (Eds.), Proceedings of the 13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017 Article 050045 (AIP Conference Proceedings; Vol. 1905). American Institute of Physics Inc.. https://doi.org/10.1063/1.5012264

Yasmirullah, Septia Devi Prihastuti ; Iriawan, Nur ; Sipayung, Feronika Rosalinda. / An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method. Proceedings of the 13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017. editor / Haslinda Ibrahim ; Nazrina Aziz ; Mohd Kamal Mohd Nawawi ; Azizah Mohd Rohni ; Jafri Zulkepli. American Institute of Physics Inc., 2017. (AIP Conference Proceedings).

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title = "An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method",

abstract = "The success of regional economic establishment could be measured by economic growth. Since the Act No. 32 of 2004 has been implemented, unbalance economic among the regency in Indonesia is increasing. This condition is contrary different with the government goal to build society welfare through the economic activity development in each region. This research aims to examine economic growth through the distribution of bank credits to each Indonesia's regency. The data analyzed in this research is hierarchically structured data which follow normal distribution in first level. Two modeling approaches are employed in this research, a global-one level Bayesian approach and two-level hierarchical Bayesian approach. The result shows that hierarchical Bayesian has succeeded to demonstrate a better estimation than a global-one level Bayesian. It proves that the different economic growth in each province is significantly influenced by the variations of micro level characteristics in each province. These variations are significantly affected by cities and province characteristics in second level.",

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Yasmirullah, SDP, Iriawan, N & Sipayung, FR 2017, An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method. in H Ibrahim, N Aziz, MKM Nawawi, AM Rohni & J Zulkepli (eds), Proceedings of the 13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017., 050045, AIP Conference Proceedings, vol. 1905, American Institute of Physics Inc., 13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017, Kedah, Malaysia, 4/12/17. https://doi.org/10.1063/1.5012264

An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method. / Yasmirullah, Septia Devi Prihastuti; Iriawan, Nur; Sipayung, Feronika Rosalinda.
Proceedings of the 13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017. ed. / Haslinda Ibrahim; Nazrina Aziz; Mohd Kamal Mohd Nawawi; Azizah Mohd Rohni; Jafri Zulkepli. American Institute of Physics Inc., 2017. 050045 (AIP Conference Proceedings; Vol. 1905).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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PY - 2017/11/22

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N2 - The success of regional economic establishment could be measured by economic growth. Since the Act No. 32 of 2004 has been implemented, unbalance economic among the regency in Indonesia is increasing. This condition is contrary different with the government goal to build society welfare through the economic activity development in each region. This research aims to examine economic growth through the distribution of bank credits to each Indonesia's regency. The data analyzed in this research is hierarchically structured data which follow normal distribution in first level. Two modeling approaches are employed in this research, a global-one level Bayesian approach and two-level hierarchical Bayesian approach. The result shows that hierarchical Bayesian has succeeded to demonstrate a better estimation than a global-one level Bayesian. It proves that the different economic growth in each province is significantly influenced by the variations of micro level characteristics in each province. These variations are significantly affected by cities and province characteristics in second level.

AB - The success of regional economic establishment could be measured by economic growth. Since the Act No. 32 of 2004 has been implemented, unbalance economic among the regency in Indonesia is increasing. This condition is contrary different with the government goal to build society welfare through the economic activity development in each region. This research aims to examine economic growth through the distribution of bank credits to each Indonesia's regency. The data analyzed in this research is hierarchically structured data which follow normal distribution in first level. Two modeling approaches are employed in this research, a global-one level Bayesian approach and two-level hierarchical Bayesian approach. The result shows that hierarchical Bayesian has succeeded to demonstrate a better estimation than a global-one level Bayesian. It proves that the different economic growth in each province is significantly influenced by the variations of micro level characteristics in each province. These variations are significantly affected by cities and province characteristics in second level.

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A2 - Aziz, Nazrina

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ER -

Yasmirullah SDP, Iriawan N, Sipayung FR. An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method. In Ibrahim H, Aziz N, Nawawi MKM, Rohni AM, Zulkepli J, editors, Proceedings of the 13th IMT-GT International Conference on Mathematics, Statistics and their Applications, ICMSA 2017. American Institute of Physics Inc. 2017. 050045. (AIP Conference Proceedings). doi: 10.1063/1.5012264

An economic growth model based on financial credits distribution to the government economy priority sectors of each regency in Indonesia using hierarchical Bayesian method

Abstract

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UN SDGs

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