DETERMINANTS OF REGIONAL ECONOMIC PERFORMANCE EFFICIENCY OF SOUTH SUMATRA PROVINCE
South Sumatra Province is one of the provinces that has abundant natural resources and wealth. One of the productivity indicators is efficiency, technical efficiency is obtained from the results of the Stochastic Frontier Analysis (SFA) calculation and the approach to measuring the effect of potential output, poverty, unemployment, and per capita income on the efficiency of regional economic performance using the Error Correction Model (ECM).The results show that in the long term the potential output variable has a significant negative effect on the efficiency of regional economic performance, while the variables of poverty, unemployment, and per capita income have no significant effect on the efficiency of regional economic performance. In the short-term equation, the potential output variable has a negative and significant effect on the efficiency of regional economic performance, the income per capita variable has a positive and significant effect, while the variables of poverty and unemployment have a positive but not significant effect on regional economic performance. The limitation of this research is the lack of reference for macroeconomic research with a technical efficiency approach, but this does not reduce macroeconomic studies in the research period.
Stochastic Frontier Analysis (SFA), Regional Economic Performance Efficiency Techniques (ET), Error Correction Model (ECM)