The Roles of Entrepreneurship on Regional Economic Growth in Indonesia

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


New endogenous growth theory introduces how investment in knowledge and human capital contribute to economic growth through spillover of knowledge. However, the theory has limitation because it does not explain the cause and the mechanism of how knowledge spillover occurs. Accordingly, by employing panel data of 33 provinces in Indonesia over the period of 2008–2013 and fixed effect method, this paper aims to investigate the roles of entrepreneurship on regional economic growth in Indonesia. The study applies different approaches to measure the entrepreneurial activities based on GEM categories, namely, self-employment rate and business ownership rate as indicators of entrepreneurial productivity. Furthermore, a more specific analysis is conducted by identifying entrepreneurial activities into formal sector and informal sector. The estimation result indicates that entrepreneurial productivity plays a significant role on regional economic growth in Indonesia. Moreover, entrepreneurial activities in different sectors give different contributions on the economic growth.

Original languageEnglish
Pages (from-to)28-41
Number of pages14
JournalJournal of the Knowledge Economy
Issue number1
Publication statusPublished - 1 Mar 2020


  • Economic growth
  • Entrepreneurial activity
  • Entrepreneurs
  • Entrepreneurship


Dive into the research topics of 'The Roles of Entrepreneurship on Regional Economic Growth in Indonesia'. Together they form a unique fingerprint.

Cite this