Spatial dynamics of consumer price in Indonesia: convergence clubs and conditioning factors

Spatiotemporal analysis of regional inflation in an emerging country: The case of Indonesia

“…As has been said earlier, there is at least one existing study – written by Aginta (2020b) – that illuminates the presence of spatial effects in Indonesia's regional inflation dynamics. Yet the analysis does not document evidence of spatial co‐evolution in regional inflation distribution over time, and thus, exploring spatial movement – spatial attributes clustered together or moving far apart – has been eagerly anticipated.…”

“…Regional inflation dynamics have mainly been examined in the context of the search for the determinants and convergence (see, e.g., Aginta, 2020a; Purwono et al, 2020; Ridhwan, 2016; Tirtosuharto & Adiwilaga, 2013; Wimanda, 2009). To the best of our knowledge, the study of Aginta (2020b) is the only recent analysis that includes the role of a spatial factor in analyzing the determinants of club convergence formation in regional price across provinces in Indonesia.…”

Regional economic structure and heterogeneous effects of monetary policy: evidence from Indonesian provinces

“…They show that instead, city prices evolve in four convergence clubs. Similarly, Aginta (2020b) uses CPI data of the 34 Indonesian provinces and finds four convergence clubs of price dynamics across provinces. Such heterogeneity in regional price behaviors might lead to different responses to a common national policy shock and has potentially significant consequences for the implementation of monetary policy in Indonesia.…”

A review of Phillips‐Sul approach‐based club convergence tests

“…Apergis & Payne, 2012; Kim & Rous, 2012; Montañés & Olmos, 2013; Montagnoli & Nagayasu, 2015; Blanco et al., 2016; Awaworyi Churchill et al., 2018; Apergis & Payne, 2019; Holmes, Otero et al., 2019; Tomal, 2019; Ganioğlu & Seven, 2021; Maynou et al., 2021; Cai et al., 2022; Tomal, 2022; Trojanek et al., 2022), consumer price index (e.g. Fritsche & Kuzin, 2011; Kim & Kim, 2015; Gozgor et al., 2019; Aginta, 2020, 2021; Jangam et al., 2021; Çakır & Gunduz, 2022), and total factor productivity (e.g. Hamit‐Haggar, 2013; Rath & Akram, 2019; Tica & Šikić, 2019; You et al., 2019).…”