Journal of Economics and Development Studies

Spatial Consentration and Factors that Affect the Competitiveness of Province Superior Industries in Indonesia
Wiwiek Rindayati, Sri Mulatsih, Fikanti Zuliastri

Abstract
This paper aims to analyze the agglomeration and competitiveness of superior province main industries, the causality relationship between agglomeration and competitiveness industry and the factors that influence competitiveness of superior province main industries. This study large and medium scale industry raw data. The data used in this research were secondary data, panel data with time period 2006 – 2013 and cross section data this used 33 province in Indonesia. The data analysis used Hoover Balassa Index, Location Quotient, Grangger Causality method and panel data method with Fixed Effect Model.The result of analysis Granger Causality showed agglomeration and industrial competitivenessthat had a positive two-way relationship. The result of panel data regression showed factors that influence the competitiveness of superior province main industries. Those were compani size, raw material input, value added, foreign direct invesment, industry competition index,road infrastructure, electric infrasructure, and service bureaucracy dummy.

Full Text: PDF     DOI: 10.15640/jeds.v4n3a9