Contextual_Week 4_PSM I

Input Data

Data consist of the 2022 GRDP (Gross Regional Domestic Product) and 2023 Regional Minimum Wage of each provinces in Indonesia. Data of GRDP are taken from Badan Pusat Statistik, while data for Regional Minimum Wage are sourced of CNN Indonesia.

library(readxl)
psm = read_excel("contextual_week4.xlsx")
head(psm)

## # A tibble: 6 × 3
##   Provinsi            GRDP     RMW
##   <chr>              <dbl>   <dbl>
## 1 ACEH             140948. 3413666
## 2 SUMATERA UTARA   573529. 2710493
## 3 SUMATERA BARAT   182630. 2742476
## 4 RIAU             529533. 3279194
## 5 JAMBI            161718. 2943000
## 6 SUMATERA SELATAN 343484. 3404177

GRDP

Gross Regional Domestic Product (GRDP), gross domestic product of region (GDPR), or gross state product (GSP) is a statistic that measures the size of a region’s economy. Calculating mean, variance, and standard error of GRDP would tell us about the overall province based economic performance of our nation.

grdp = psm$GRDP
mean(grdp)

## [1] 348228.9

var(grdp)

## [1] 246912235340

sd(grdp)

## [1] 496902.6

Regional Minimum Wage

Regional Minimum Wage is often used as an indicator of an area welfare. It can roughly captures the living standards of said region. The expectation, variance, and standard error might tell us a little bit about a chronic social inequality that our country has long suffered from.

rmw = psm$RMW
mean(rmw)

## [1] 2923279

var(rmw)

## [1] 362421725707

sd(rmw)

## [1] 602014.7