Regional economic structure and heterogeneous effects of monetary policy: evidence from Indonesian provinces

Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 3 Estimated equations evaluating the role of the economic structure in cross-province variation in monetary policy efficiency

Variables	Dependent variable: cross-province monetary policy efficiency
Variables	(1)	(2)	(3)	(4)
Manufacturing share (% of GDP)	− 0.002^b (0.001)	− 0.001^a (0.001)	− 0.002^a (0.001)	− 0.002^b (0.001)
Construction share (% of GDP)	0.005^b (0.002)	0.005^a (0.003)	0.005^b (0.003)	0.005^b (0.003)
Domestic export share (% of GDP)	− 0.001^c (0.000)	− 0.001^c (0.000)	− 0.001^c (0.000)	− 0.001^c (0.000)
Investment share (% of GDP)	− 0.004^c (0.001)	− 0.004^c (0.001)	− 0.005^c (0.001)	− 0.005^c (0.001)
Foreign import share (% of GDP)	0.001^b (0.000)	0.001^b (0.000)	0.001^b (0.000)	0.001^b (0.000)
Changes in housing price (%)	0.028^c (0.009)	0.025^b (0.010)	0.027^b (0.010)	0.024^b (0.010)
SD of GDP growth rates	− 0.006^c (0.002)	− 0.007^c (0.002)	− 0.006^c (0.003)	− 0.007^c (0.002)
GDP per capita	− 0.001 (0.001)
Log (GDP)		− 0.005 (0.006)
Mining share (% of GDP)			− 4.E−04 (0.001)
Service share (% of GDP)				− 0.001 (0.001)
Constant	0.043 (0.065)	0.100 (0.091)	0.048 (0.067)	0.080 (0.080)
Observations	34	34	34	34
R-squared	0.613	0.592	0.589	0.588

Robust standard errors in parentheses
^a,b,cSignificance at the 10% level, 5% level, and 1% level, respectively. Source: Authors’ calculation