Determinants of Indonesia’s Long-Term Economic Structure Panel Data Approach Using Logistic Multinomial Regression

Abstract

The pattern and structure of the economy in Indonesia are experiencing a contraction in line with economic development. This study aims to analyze changes in economic structure and causative factors. The analysis was conducted in panel data on 33 provinces from 2007-2021. Using Multinomial Logistic Regression to analyze the determinants of the economic position of provinces in Indonesia. The results showed that economic growth, poverty rate, unemployment rate, and investment had a significant effect on increasing the tendency of provinces that are in the classification of underdeveloped areas to become fast-growing regions. The expansion of employment opportunities coupled with inclusive economic growth is an effort to achieve a better economy.