Capital Stock Estimates by Province and Interprovincial Distribution in Indonesia

Kataoka, Mitsuhiko

doi:10.1111/asej.12021

Cited by 8 publications

(8 citation statements)

References 18 publications

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“…The Central Bureau of Statistics, Indonesia, officially publishes all the aforementioned datasets; however, data on physical capital stock have not been officially published in Indonesia. Therefore, we use provincial estimates from Kataoka (2013) and Kataoka and Wibowo (2014). Table 1, outlining input and output variables employed in our study, indicates a severe economic imbalance between the on-Java and off-Java provinces in Indonesia.…”

Section: Datamentioning

confidence: 99%

Inequality convergence in inefficiency and interprovincial income inequality in Indonesia for 1990–2010

Kataoka

2017

Asia-Pac J Reg Sci

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We use data envelopment analysis to measure the relative efficiency among Indonesia's provinces in using input to produce output over a 20-year period that includes the global economic crisis. We then employ the inequality decomposition technique of a Theil's second measure to explore the extent to which the efficiency factor contributes to interprovincial income inequality. Our efficiency analysis reveals that most Indonesian provinces improved their relative inefficiency considerably in both resource utilization and allocation. Moreover, the relative inefficiency became convergent across provinces for the period. However, several provinces with serious pure technical and scale inefficiencies still exist in 2010. The province of Yogyakarta critically underperformed in resource utilization, and Central Kalimantan and Papua operate at further suboptimum scales. The former needs to develop appropriate mechanisms to efficiently use its given resources, while the latter need to mitigate business-unfriendly regulations and deal with financial constraints. The inequality decomposition analysis shows that interprovincial convergence of inequality in overall technical inefficiency largely contributed to the reduction in income inequality. The convergence of inequality in resource utilization inefficiency had a greater impact on inequality convergence in overall technical inefficiency than in resource allocation inefficiency. In 2010, pure labor productivity became a substantial new factor in determining income inequality. Since this measure is affected by per capita physical and human capital and technology, the spatial allocation imbalance of these factors has become a new concern in Indonesia.

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Section: Datamentioning

confidence: 99%

Inequality convergence in inefficiency and interprovincial income inequality in Indonesia for 1990–2010

Kataoka

2017

Asia-Pac J Reg Sci

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“…The Central Bureau of Statistics of Indonesia (BPS) publishes most of the data used in this paper. Data on physical capital stock and nonparametric efficiency are from Kataoka (2013Kataoka ( , 2018, respectively.…”

Section: Data Availability Statementmentioning

confidence: 99%

“…Based on the same data source, human capital per worker is constructed as a weighted average of the years of education of the labor force. Based on the physical capital stock estimates of Kataoka (2013), physical capital per worker is constructed by dividing provincial capital stock by the number of workers in the labor force.…”

Section: Data and Stylized Factsmentioning

confidence: 99%

“…Currently, the BPS only publishes historical statistics for 26 provinces. As a result, most previous studies about provincial convergence in Indonesia are based on this 26-province configuration (Garcia & Soelistianingsih, 1998;Kataoka, 2013Kataoka, , 2018Mendez, 2020;Sakamoto, 2007;Vidyattama, 2013Vidyattama, , 2014. Although conducting research based on 26 provinces (instead of 34) is not an optimal research setting, it allows both the construction of a balanced data set for multiple variables and the presentation of results in a way that is consistent with the provincial configuration used in most previous studies.…”

Section: Testing For Economic Convergence Across Indonesian Regionsmentioning

confidence: 99%

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Disparities in regional productivity, capital accumulation, and efficiency across Indonesia: A club convergence approach

Mendez-Guerra

Kataoka

2020

Review Development Economics

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This paper studies the evolution of regional disparities in labor productivity, capital accumulation, and efficiency across Indonesian provinces over the 1990-2010 period.Through the lens of a nonlinear dynamic factor model, we first test the hypothesis that all provinces would eventually converge to a common steady-state path. We reject this hypothesis and find that the provincial dynamics of labor productivity are characterized by two convergence clubs.We next evaluate the dynamics of the proximate sources of labor productivity and find some mixed results. On the one hand, physical and human capital accumulation are characterized by three and two convergence clubs, respectively.On the other hand, efficiency is characterized by a unique convergence club. The paper concludes by suggesting that, based on the provincial composition of each club and the common low level of efficiency across Indonesia, considerable improvements in both capital accumulation and efficiency are still needed to reduce regional disparities and accelerate productivity growth.

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“…Human capital is proxied by the average period of education, weighted by the educational attainment of the provincial labour force. Physical capital estimates are fromKataoka (2013) and they are based on the perpetual inventory method.…”

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confidence: 99%

Regional efficiency convergence and efficiency clusters

Méndez

2020

Asia-Pac J Reg Sci

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Improving production efficiency at the regional level is often considered a means to reduce regional inequality. This article studies regional efficiency convergence across provinces in Indonesia over the 1990-2010 period. Through the lens of both classical and distributional convergence frameworks, the dispersion dynamics of the following three indicators are contrasted: overall efficiency, pure efficiency, and scale efficiency. Results from the classical convergence approach suggest that-on average-there is regional convergence in all these three efficiency measures. However, results from the distributional convergence approach indicate the existence of two local convergence clusters within the overall and pure efficiency distributions. Moreover, since scale efficiency is characterized by only one convergence cluster, the two clusters of pure efficiency appear to be driving the overall regional efficiency dynamics in Indonesia. The article concludes highlighting the importance of monitoring and evaluating heterogeneous (beyond average) behaviour, multiple convergence clusters, and geographic proximity when formulating regional policies that aim to reduce regional inequality.

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Capital Stock Estimates by Province and Interprovincial Distribution in Indonesia

Cited by 8 publications

References 18 publications

Inequality convergence in inefficiency and interprovincial income inequality in Indonesia for 1990–2010

Inequality convergence in inefficiency and interprovincial income inequality in Indonesia for 1990–2010

Disparities in regional productivity, capital accumulation, and efficiency across Indonesia: A club convergence approach

Regional efficiency convergence and efficiency clusters

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