Interregional Inequalities in Indonesia: A Sectoral Decomposition Analysis for 1975–92

Akita, Takahiro; Lukman, Rizal Affandi

doi:10.1080/00074919512331336785

Cited by 89 publications

(56 citation statements)

References 19 publications

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“…Interprovincial income inequality decreased from 0.331 in 1990 to 0.220 in 2010. This decreasing trend is consistent with previous studies of Indonesia's regional income inequality, such as Akita and Lukman (1995), Akita and Alisjahbana (2002), Akita (2003), Akita and Miyata (2010), Kataoka (2010), and Akita et al (2011). This observation is also reasonable in light of the Asian financial crisis in 1997/1998 and the global financial crisis in 2007/2008 although neither crisis was found to mark a turning point.…”

Section: Identifying the Sources Of Interprovincial Income Inequalitysupporting

confidence: 91%

“…Several studies examine the factors underlying interregional income inequality, employing various inequality measures and factor decomposition techniques (e.g., Islam and Khan 1986;Akita 1988;Azis 1990;Akita and Lukman 1995;Garcia and Soelistianingsih 1998;Akita et al 1999;Hill 2000;Tadjoeddin et al 2001;Akita and Alisjahbana 2002;Hill 2002;Akita 2003;Milanovic 2005;Akita and Miyata 2008;Hill 2008;Akita and Miyata 2010;Kataoka 2010;Akita, et al 2011;Hayashi et al 2014). One decomposition technique for income inequality is to analyze the factors affecting gross regional domestic product (GRDP) by sectoral income source and hierarchical regional structure (Akita and Lukman 1995;Tadjoeddin et al 2001;Akita and Alisjahbana 2002;Akita 2003;Miyata 2008, 2010;Kataoka 2010;Akita et al 2011). Another method is to analyze the factors associated with expenditure data by household head subgroup, such as province, location, educational attainment, gender, and age (Akita et al 1999;Akita and Miyata 2008;Hayashi et al 2014).…”

Section: Introductionmentioning

confidence: 99%

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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: Identifying the Sources Of Interprovincial Income Inequalitysupporting

confidence: 91%

Section: Introductionmentioning

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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“…Indonesia's economic development is distinguished by an endemic problem of regional economic inequality and poverty [37,38,39,40,41]. Both endemic problems widen the following decentralization and lead to communal conflict.…”

Section: B Discussionmentioning

confidence: 99%

Does Fiscal Decentralization Good For Reducing Communal Conflict?

Rusyiana¹,

Sujarwoto²,

Muluk³

2017

Proceedings of the International Conference on Administrative Science, Policy and Governance Studies (ICAS-PGS 2017) and the In

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“…The richest 10 percent of Indonesians own an estimated 77 percent of all the country's wealth and in fact, the richest 1 percent owns half of all the country's wealth [27]. Indonesia's economic development is distinguished by an endemic problem of regional economic inequality and poverty [28] Likewise, this study shows that local governments in Indonesia vary regarding policies for communal conflict reduction. At the district level, the policy depends on the ability of local governments to provide goods and services that meet the needs of local citizens, rather than financing capacity and granting district proliferation policy.…”

Section: Multilevel Logistic Regressionmentioning

confidence: 91%

Radical Decentralization Reform and Communal Conflict in Indonesia, 2003-2014

Rusyiana¹,

Muluk²,

Sujarwoto³

2017

Proceedings of the International Conference on Administrative Science (ICAS 2017)

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Abstract-Radical decentralization reform works or does not work for reducing communal conflict is still debatable. This study examines the linkage between decentralization policy and communal conflict in Indonesia. Two measurement of decentralization: administrative decentralization, and fiscal decentralization is examined. Data come from the Village National Census (Podes) 2003-2014 (N=301.974). Results of twolevel logit regression show that fiscal decentralization not significantly associated with reducing communal conflict. The findings suggest that decentralization work for reducing communal conflict through better capacity of local bureaucrats rather than through financing capacity in delivering public services and district proliferation policy

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Interregional Inequalities in Indonesia: A Sectoral Decomposition Analysis for 1975–92

Cited by 89 publications

References 19 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

Does Fiscal Decentralization Good For Reducing Communal Conflict?

Radical Decentralization Reform and Communal Conflict in Indonesia, 2003-2014

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