AGLOMERATION AND THE DYNAMICS OF LABOUR MANUFACTURING INDUSTRY GROWTH OF JAVA ECONOMIC CORRIDOR IN THE INDUSTRIAL REVOLUTION ERA 4.0
Yoga Dwi Nugroho, Krismanti Tri Wahyuni
Politeknik Statistika STIS
Abstract
The Industrial Revolution 4.0 was a logical revolution of the previous industrial revolution. The Industrial Revolution 4.0 is made with automation and Internet use from things that can provide improvements in many sectors. One of them is the manufacturing industry sector. The manufacturing industry is the leading sector that must receive attention, especially in terms of policy. Spatial oriented policies (agglomeration) can be used to implement good policies, especially through agglomeration analysis. Agglomeration analysis used the Hoover Balassa Index (HBI) with an emphasis on labor growth in districts in Java. The existence of this agglomeration will cause differences in the growth of labor which will then be sought for the determinant. So that static panel data analysis will be used with the Fixed Effect Model SUR model. The dependent variable used is the manufacturing industry workforce. The independent variables used are wages, company efficiency, number of companies, industry competition index, import content, industrial revolution dummy 4.0 and agglomeration dummy. Agglomeration analysis shows that there are two agglomeration poles, namely, the western end and the east end of Java Island. There are six independent variables that are significant as determinants of labor growth, namely, wages, company efficiency, number of companies, industry competition index, industrial revolution dummy 4.0 and agglomeration dummy.
Keywords: Agglomeration, HBI, Panel, Revolution of Industry 4.0
Topic: Trade policies strategic Responses