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

Mendez-Guerra, Carlos; Kataoka, Mitsuhiko

doi:10.1111/rode.12726

Cited by 20 publications

(10 citation statements)

References 48 publications

(159 reference statements)

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“…The results show two convergence clubs in terms of all investigated variables. 2 Using a similar method, Mendez and Kataoka (2020) examine the disparities in ) 1975-1993 1980-1993 1983-1993 Absolute and conditional beta convergence Results: Absolute convergence; conditional convergence increases convergence speed. Akita (2002) (27 provinces and 303 districts) 1975-1983 1983-1993 1993-1999 Williamson's weighted coefficient of variation (CVw) and Theil index…”

Section: Regional Income Convergence In Indonesiamentioning

confidence: 99%

“…In Indonesia's context, a high degree of regional heterogeneity has been previously documented using province-level data. Moreover, it has been argued that only focusing on average patterns is likely to be incomplete at best or misleading at worst (Mendez and Kataoka, 2020). In an attempt to start documenting the degree of regional heterogeneity using district-level data of recent years, Figures 4 and 5 show the evolution of regional disparities beyond the scope of the average or median district.…”

Section: Stylized Facts On Regional Disparities In Indonesiamentioning

confidence: 99%

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Regional income disparities and convergence clubs in Indonesia: new district-level evidence

Aginta

Gunawan²,

Méndez

2021

Journal of the Asia Pacific Economy

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This paper aims to re-examine the regional convergence hypothesis on income in Indonesia over the 2000-2017 period. By applying a non-linear dynamic factor model, this paper tests the club convergence hypothesis using a novel dataset of income at the district level.The results show significant five convergence clubs in Indonesian districts' income dynamics, implying the persistence of income disparity problems across districts even after implementing the decentralization policy. The subsequent analysis reveals two appealing features regarding the convergence clubs. First, districts belonging to the same province tend to be in the same club, and second, districts with specific characteristics (i.e., big cities or natural resources-rich regions) dominate the highest income club. Overall, our findings suggest some insightful policy implications, including the importance of differentiated development policies across convergence clubs and inter-provincial development strategies.

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Section: Regional Income Convergence In Indonesiamentioning

confidence: 99%

Section: Stylized Facts On Regional Disparities In Indonesiamentioning

confidence: 99%

Regional income disparities and convergence clubs in Indonesia: new district-level evidence

Aginta

Gunawan²,

Méndez

2021

Journal of the Asia Pacific Economy

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“…This, in particular, is true when tourism and economic activities start to branch out, seeking for lower‐price alternatives. Furthermore, as Figure 2 suggests, low‐performing regions are not spatial isolates, in which knowledge spillovers, as coined in Mendez and Kataoka (2020), can be sought to push for improvements. In such a scenario, the lower‐performing regions can seek the nearest better‐performing ones for technological reference.…”

Section: Resultsmentioning

confidence: 99%

Mapping destination competitiveness in Indonesia’s Nusa Tenggara Timur (NTT) province: A Malmquist–data envelopment analysis approach

Bire

2021

Regional Science Policy & Practice

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This research explores destination competitiveness in the Nusa Tenggara Timur (NTT) Province of Indonesia. Absence of empirical studies related to destination efficiency in Indonesia, and the significant uprise of the tourism sector in NTT, justify the study. We employed a Malmquist–data envelopment analysis (DEA) to assess performances of regions in NTT. Results presented technical efficiency and efficiency change indexes, and further provisions regarding managerial implications. Regional tourism stakeholders therefore should adhere to the new scenario, which may entail radical rethinking regarding their traditional ways of defining, structuring, and distributing tourism products.

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“…Regional inequality is a fundamental problem for developing countries, including Indonesia (Mendez & Kataoka, 2021). Indonesia's economy during 2015-2019 is still concentrated on Java Island.…”

Section: Introductionmentioning

confidence: 99%

Fiscal Decentralization and Per Capita Income Convergence between Regencies/Municipalities in Java Island

Anggraeni

2022

JICP

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This study aims to analyze the existence of beta absolute convergence and beta conditional convergence, the impact of fiscal decentralization in terms of income and expenditure side on per capita income and the process of accelerating the per capita income convergence using 2015-2019 panel data of 113 regencies/municipalities obtained from Central Bureau of Statistics and the Directorate General for Fiscal Balance. Using fixed effect regression models, this study confirms that there are beta absolute convergence and beta conditional convergence in Java Island during 2015-2019. Other findings are Local Own Source Revenue and Fiscal Balance Fund have a significant positive effect on per capita income growth, while Personnel Expenditure and Capital Expenditure have a significant negative effect on per capita income growth. The results also show that all indicators of fiscal decentralization play significant role in accelerating the convergence of per capita income. Based on the results of estimates, Local Government Own Source Revenue should be optimized and quality of government spending have to be improved to foster income per capita convergence between regions in Java Island. Keywords: income per capita convergence, fiscal decentralization regional inequality, absolute beta convergence, conditional beta convergence

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

Cited by 20 publications

References 48 publications

Regional income disparities and convergence clubs in Indonesia: new district-level evidence

Regional income disparities and convergence clubs in Indonesia: new district-level evidence

Mapping destination competitiveness in Indonesia’s Nusa Tenggara Timur (NTT) province: A Malmquist–data envelopment analysis approach

Fiscal Decentralization and Per Capita Income Convergence between Regencies/Municipalities in Java Island

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