Title: Modeling Gross Regional Domestic Product in East Nusa Tenggara Province Using Binary Logit Regression Panel Data with Random Effects
Authors: Adnan Syawal Adilaha Sadikin Toha Saifudin M. Fariz Fadillah Mardianto Dita Amelia
Volume: 8
Issue: 12
Pages: 45-50
Publication Date: 2024/12/28
Abstract:
Gross Regional Domestic Product (GRDP) is a benchmark for the economic condition of a region. To be able to measure changes in production volume or productivity developments in real terms, the influencing factors on price changes need to be eliminated by calculating GRDP based on constant prices. Every regional economic development process that has been carried out in districts and cities in NTT Province has resulted in economic growth characterized by the varying GRDP per capita value of districts and cities in NTT Province, resulting in the problem of inequality in economic development between regions. This is the main focus of this study in an effort to increase GRDP. It is important to conduct an analysis in identifying factors that affect GRDP in NTT Province, one of which is using panel data logit biner regression analysis that covers all districts and cities in a certain period. The accuracy of the classification obtained from the analysis, was investigated by looking at the Apparent Error Rate (APPER) value. The results of the study show that the modeling of GRDP in all districts/cities in NTT Province is in accordance with what is seen through the Likelihood Ratio test. The APPER value results is 10.61% that makes an excellent classification accuracy is 89.39% and a McFadden R-Squared of 64.64%. Therefore, this study is expected to be the basis for formulating policies to increase the value of GRDP in all districts and cities of East Nusa Tenggara Province.