Productivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province

Productivity growth needs to be optimized not only to produce quality products, increase exports, and reduce dependence on imports but also to support the performance of the manufacturing sector. This study aims to determine the manufacturing industry map in Banten Province, measure manufacturing in...

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Autores principales:	Diasitta Yusuf, Muhammad Firdaus, Alla Asmara
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Muhammadiyah Yogyakarta 2021
Materias:	k-means cluster, lcr, manufacturing industry, panel data, tfp Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/103e9ee262d642b9b63c599fdd442c4c
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spelling	oai:doaj.org-article:103e9ee262d642b9b63c599fdd442c4c2021-11-05T03:54:11ZProductivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province1411-99002541-550610.18196/jesp.v22i2.11369https://doaj.org/article/103e9ee262d642b9b63c599fdd442c4c2021-10-01T00:00:00Zhttps://journal.umy.ac.id/index.php/esp/article/view/11369https://doaj.org/toc/1411-9900https://doaj.org/toc/2541-5506Productivity growth needs to be optimized not only to produce quality products, increase exports, and reduce dependence on imports but also to support the performance of the manufacturing sector. This study aims to determine the manufacturing industry map in Banten Province, measure manufacturing industry productivity growth, and analyze the effect of Local Content Requirement (LCR) on manufacturing industry productivity growth from 2005 to 2017 by employing the use of K-Means cluster and panel data regression analysis. For this purpose, Total Factor Productivity (TFP) is the indicator used to measure productivity growth. The LCR is known as the percentage of local raw and auxiliary materials used in the production process. According to K-Means cluster analysis results, industrial companies are grouped into three clusters with different characteristics. The result of panel data regression analysis shows that the TFP of all manufacturing industry sub-sectors has increased and was influenced by LCR, total production, domestic investment, import, and provincial minimum wage. As a result, the government should integrate the LCR and other policies, such as the Indonesian National Standard, to increase productivity growth.Diasitta YusufMuhammad FirdausAlla AsmaraUniversitas Muhammadiyah Yogyakartaarticlek-means cluster, lcr, manufacturing industry, panel data, tfpEconomic theory. DemographyHB1-3840ENJurnal Ekonomi & Studi Pembangunan, Vol 22, Iss 2, Pp 154-169 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	k-means cluster, lcr, manufacturing industry, panel data, tfp Economic theory. Demography HB1-3840
spellingShingle	k-means cluster, lcr, manufacturing industry, panel data, tfp Economic theory. Demography HB1-3840 Diasitta Yusuf Muhammad Firdaus Alla Asmara Productivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province
description	Productivity growth needs to be optimized not only to produce quality products, increase exports, and reduce dependence on imports but also to support the performance of the manufacturing sector. This study aims to determine the manufacturing industry map in Banten Province, measure manufacturing industry productivity growth, and analyze the effect of Local Content Requirement (LCR) on manufacturing industry productivity growth from 2005 to 2017 by employing the use of K-Means cluster and panel data regression analysis. For this purpose, Total Factor Productivity (TFP) is the indicator used to measure productivity growth. The LCR is known as the percentage of local raw and auxiliary materials used in the production process. According to K-Means cluster analysis results, industrial companies are grouped into three clusters with different characteristics. The result of panel data regression analysis shows that the TFP of all manufacturing industry sub-sectors has increased and was influenced by LCR, total production, domestic investment, import, and provincial minimum wage. As a result, the government should integrate the LCR and other policies, such as the Indonesian National Standard, to increase productivity growth.
format	article
author	Diasitta Yusuf Muhammad Firdaus Alla Asmara
author_facet	Diasitta Yusuf Muhammad Firdaus Alla Asmara
author_sort	Diasitta Yusuf
title	Productivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province
title_short	Productivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province
title_full	Productivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province
title_fullStr	Productivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province
title_full_unstemmed	Productivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province
title_sort	productivity growth and local content requirement of the manufacturing industry in banten province
publisher	Universitas Muhammadiyah Yogyakarta
publishDate	2021
url	https://doaj.org/article/103e9ee262d642b9b63c599fdd442c4c
work_keys_str_mv	AT diasittayusuf productivitygrowthandlocalcontentrequirementofthemanufacturingindustryinbantenprovince AT muhammadfirdaus productivitygrowthandlocalcontentrequirementofthemanufacturingindustryinbantenprovince AT allaasmara productivitygrowthandlocalcontentrequirementofthemanufacturingindustryinbantenprovince
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Productivity Growth and Local Content Requirement of the Manufacturing Industry in Banten Province

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