In addition population also has a significant influence to land allocation behavior except to plantation allocation behavior. Other economic factor such as wage and interest rate tend to have no significant influence on land allocation behavior. The result shows that there is a competition between land-use due to land use price volatility. This paper briefly examine land allocation behavior for forest, plantation and food crop and mine land as function of some socio-economic factors. This model uses spatial land cover data at provincial level from 2000 to 2013 and socio-economic variables that collected from various sources. underlying theory that specifies why we would expect one variable to be de- pendent or related to one or more other variables. The model is considering the profit-maximization behavior in modeling the process of land use change. This paper tries to develop econometric model to study land allocation behavior. It is therefore a challenge to develop an appropriate model that can address these complexities. Land use and land-use change have a significant impact on economic growth and quality of environment. Dynamics of land allocation for different land uses at regional level in Indonesia is a multi-dimensional problem, as it is influenced by socio-economic and policy factors of land use change. Download our koutsoyiannis theo-ry of econometrics eBooks for free and learn more about koutsoyiannis theory of econometrics. This issue associates with a trade-off between economic development and environmental quality. Koutsoyian-nis Econometrics By Koutsoyiannis.pdf Free Download Here Theory of Econometrics, 2001, A. Land use, land use change, and forestry issue has become attractive issue.
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