PRODUKTIVITAS FAKTOR TOTAL (TOTAL FACTOR PRODUCTIVITY) PROVINSI JAWA BARAT TAHUN 1987-2012

Productivity is one of important factors in the production process to produce goods and services. One of productivity measurement is to analyze the Total Factor Productivity (TFP). Some previous researches show that Indonesian TFP is lower than some other countries in ASEAN. This study aims to analyze the Total Factor Productivity in West Java Province as the third largest province of GDP share in Indonesia. The data used is time series data of West Java Province 1987-2012 by using econometric techniques. The Analysis tool is regression analysis and calculation of growth with growth accounting method. The results showed that the average TFP growth during the year 1987- 2012 was 0.64 percent with an average economic growth in the same period by 4.8 percent. TFP growth period of the study accounted for 13.26 percent of the economic growth. While the growth of capital and labor respectively accounted for 81.86 per cent and 4.89 per cent to economic growth. From the analysis of TFP growth sectors of the economy, the results showed that TFP growth is negative in all sectors, except for the sectors of trade, hotel and restaurant which are positive 0.09 percent. This study also shows that the positive growth of TFP can be interpreted as the role of technological progress in the economy of West Java Province , one of them due to the high accumulation of capital that impact on the transfer of technology