Central Java regional competitiveness: The impacts of production factor, corruption, regulation, and infrastructure

Abstract

National and regional competitiveness have become important elements for determining investment and regional resilience. A number of indices have been developed as references to determine a sustainable business target. Studies in this direction have also been carried out using various methods, but the majority of them used secondary data, applied different variables, and were not from the perspective of business actors. This research therefore analyzes the influence of production factors, regulation, corruption perception, and infrastructure on the business environment in Central Java, Indonesia, which is a decentralized country. This study applied competitiveness pillars used by the World Economic Forum (WEF) and offered a quantitative approach by carrying out a survey of 1506 companies across various sectors and sizes. Using analysis of moment structures (AMOS) and also robust covariance analysis method, this research has found that even though the city/regency competitiveness is high, there is no significant effect between production factors, regulation, corruption perception, and infrastructure on business environment in the context of regional competitiveness. This proves that primary and secondary data can provide different results and need to complement each other when assessing regional competitiveness.

Relationships between factors of regional competitiveness in Central and Eastern Europe

“…Narrower approaches link competitiveness to economic growth (e.g. Prabawani et al 2020), primarily to the level and change in productivity. As Krugman noted in connection with international competition (1994, p. 35), 'if they wish, [they can] use the term "competitiveness" as a poetic way of saying productivity'.…”

Revitalization of Mill Island Cultural Facilities as a Factor of the Region’s Attractiveness and Competitiveness

“…Competitiveness has been broadly described in both national and international literature. According to Prabawani et al [8], it takes two forms: global, meaning a country's ability to sustain economic growth, and regional, which contributes to the development of a prosperous business environment. One important aspect raised by the authors is that regional competitiveness affects long-term economic growth, for each region creates value for the population living in its area.…”