ABSTRACT
The purpose of this study is to analyze the sigma and absolute beta convergence and measure the speed of per capita income merging occurring in the New Autonomous Region in Western Indonesia. The independent variable used is the Gross Domestic Product (GDP) per capita, while panel data with model fixed effect were the data used. The results showed that sigma convergence did not occur during the study period. Primarily, absolute convergence does not occur as evidenced by the lower level of income per capita NAR, which does not grow as faster as the NAR. The speed of absolute beta convergence is fifteen percent per year, while the time needed to close half of the initial gap between the New Autonomous Region (NAR) in Western Indonesia is four years.
