Eka Thanomutiara, Doctoral Student of Economics, Faculty of Economics, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0001-5271-0600
e-mail: handikapra2019@gmail.com

Taufiq Marwa, Doctor of Economics, Faculty of Economics, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0001-6975-8942
e-mail: taufiqmarwah@unsri.ac.id

Didik Susetyo, Doctor of Economics, Faculty of Economics, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0002-2435-3519
e-mail: didiksusetyo60@unsri.ac.id

Azwardi, Doctor of Economics, Faculty of Economics, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0003-0066-2445
e-mail: azwardi@fe.unsri.ac.id

Determinant of Total Factor Productivity Growth In South Sumatra

Abstract. Introduction. Total Factor Productivity (TFP) is size productivity, more highthe Total Factor Productivity index is getting high productivity, so more high economic growth. Growth of the economy of South Sumatra province in some years experience a significant increase _ even more tall than the national average. Role technology in growth is very important. For that need, existence is a known determinant of TFP growth. Potential Output Variables Becomes moderating variable for variable Natural resources Nature and Income per capita against variable Dependent Total Factor Productivity.

Purpose. This research aims to determine and measure whether potential output variable as a moderating variable is able to strengthen or weaken the relationship between other input variables, such income per capita and natural resources towards variable Total Factor Productivity.

Results. Research results show that Potential Output Variables could Become variable Moderating variable Natural resources Nature and Income per capita, yield equality Moderating regression shows that Potential Output has moderation to variable Natural resources Nature and Income per capita by strong and significant weaken growth in Total Factor Productivity (TFP) of South Sumatra Province.

Conclusions. Based on the results coefficient determinant is known to score coefficient determination  R2 of 0.92 while the coefficient determinant first equation (natural resource) state amount 0.89 dan second equation (income per capita) is 0.81, it is indicate that Potential Output as moderating variable able to weaken input variable natural resources and income per capita towards Total Factor Productivity (TFP) growth of Sout Sumatera Province.

Keywords: Total Factor Productivity (TFP); Moderating; Potential Output (OP); Natural resources Nature (SDA); Income Per capita (IC).

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