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Original Research

IMPACT OF MIGRANT ENTREPRENEURS ON ECONOMIC GROWTH

MEILINDA TRISILIA 1, M. PUDJIHARDJO 2, SUSILO 3, and DEVANTO SHASTA PRATOMO 4.

Vol 18, No 04 ( 2023 )   |  DOI: 10.17605/OSF.IO/U5GF6   |   Author Affiliation: Economics Doctoral Program, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia, Jalan MT Haryono Nomor 165 Malang 65135, Jawa Timur, Indonesia 1; Economics Doctoral Program, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia 2,3,4.   |   Licensing: CC 4.0   |   Pg no: 760-773   |   Published on: 19-04-2023

Abstract

Migration is one of the population problems faced by developing countries. Migration is carried out by those looking for work and those who want to expand their business. This research was conducted to determine the impact of migrant entrepreneurs on economic growth in developing countries. The Heckman two-step estimation method analyses the impact of entrepreneur migration on economic growth in developing countries. The data used comes from the Inter-Census Population Survey (SUPAS) data. The results of this study indicate that the determinants of migrant entrepreneurs in East Java Province are significantly influenced by age, gender, education level, marital status, presence of family members under the age of 5, the broadest floor type, category description of the region of origin, GRDP of ADHK region of birth, and the number of poor people. The results of the analysis of the significant impact of migrant entrepreneurs on the economic sector (ADHK GRDP in the destination area) on migrant entrepreneurs in East Java Province are migrant entrepreneurs of productive age, male migrant entrepreneurs, migrant entrepreneurs with non-graduate/diploma education levels, migrant entrepreneurs who are originating from areas with the broadest type of flooring in the form of non-timber/soil, and migrant entrepreneurs creating from non-metropolitan city areas. This research helps formulate policy strategies that the government can use to encourage migrant entrepreneurs to establish businesses in destination areas to increase economic growth in migration destination areas.


Keywords

Entrepreneur Migrant, Heckman two-step estimation, GRDP, labor migration.