IDEAS home Printed from https://ideas.repec.org/a/uii/journl/v10y2018i2p205-212.html
   My bibliography  Save this article

Economic agglomeration, economic growth and income inequality in regional economies

Author

Listed:
  • Imam Mukhlis
  • Isnawati Hidayah
  • Sariyani

    (Department of Development Economics, Faculty of Economics, Universitas Negeri Malang, Malang, Indonesia
    Master’s Student, Master of International Development Studies, Wageningen University & Research, Hollandseweg 1, 6706 KN Wageningen, The Netherlands.
    Master’s Student, Master of Economics, Postraduate Study, Universitas Negeri Malang, Malang, Indonesia)

Abstract

This study analyses the relationship between economic agglomeration, economic growth, and income inequality in East Java Province, Indonesia, in 2011-2015, after implementing a regional autonomy policy of regional development. It uses panel data with a random effect model. The model estimation’s result suggests that economic agglomeration significantly and positively affects income inequality. However, economic growth does not have any significant effects on income inequality.

Suggested Citation

  • Imam Mukhlis & Isnawati Hidayah & Sariyani, 2018. "Economic agglomeration, economic growth and income inequality in regional economies," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 205-212, Oktober.
    • Handle: RePEc:uii:journl:v:10:y:2018:i:2:p:205-212
    DOI: 10.20885/ejem.vol10.iss2.art9
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JEP/article/download/10677/8652
    Download Restriction: no
    File URL: https://journal.uii.ac.id/JEP/article/view/10677/8652
    Download Restriction: no
    File URL: https://libkey.io/10.20885/ejem.vol10.iss2.art9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vittorio Galletto & Rafael Boix, 2008. "Marshallian Industrial Districts in Spain," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2008(3), pages 29-52.
    2. David Castells-Quintana & Vicente Royuela, 2014. "Agglomeration, inequality and economic growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 343-366, March.
    3. Ha Vu & Pundarik Mukhopadhaya, 2011. "Reassessing the Relationship between Economic Growth and Inequality," Economic Papers, The Economic Society of Australia, vol. 30(2), pages 265-272, June.
    4. Frazer, Garth, 2006. "Inequality and development across and within countries," World Development, Elsevier, vol. 34(9), pages 1459-1481, September.
    5. Kurt Geppert & Andreas Stephan, 2008. "Regional disparities in the European Union: Convergence and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 193-217, June.
    6. Nasfi Fkili Wahiba & Malek El Weriemmi, 2014. "The Relationship Between Economic Growth and Income Inequality," International Journal of Economics and Financial Issues, Econjournals, vol. 4(1), pages 135-143.
    7. Muhammad Shahbaz, 2010. "Income inequality‐economic growth and non‐linearity: a case of Pakistan," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(8), pages 613-636, July.
    8. Saša Obradoviæ & Nemanja Lojanica & Olivera Jankoviæ, 2016. "The influence of economic growth on regional disparities: Empirical evidence from OECD countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 34(1), pages 161-186.
    9. Imam Mukhlis & Timbul Hamonangan Simanjuntak, 2016. "The Nexus of Economic Factors and Poverty in the Region’s Economy," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 7(1), pages 14-20.
    10. Fiorenza Belussi & Katia Caldari, 2009. "At the origin of the industrial district: Alfred Marshall and the Cambridge school," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(2), pages 335-355, March.
    11. Yu Hsing, 2005. "Economic growth and income inequality: the case of the US," International Journal of Social Economics, Emerald Group Publishing, vol. 32(7), pages 639-647, July.
    12. Dierk Herzer & Sebastian Vollmer, 2012. "Inequality and growth: evidence from panel cointegration," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(4), pages 489-503, December.
    13. Risso, W. Adrián & Punzo, Lionello F. & Carrera, Edgar J. Sánchez, 2013. "Economic growth and income distribution in Mexico: A cointegration exercise," Economic Modelling, Elsevier, vol. 35(C), pages 708-714.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jun Zhao & Xiucheng Dong & Kangyin Dong, 2021. "Can agglomeration of producer services reduce urban–rural income inequality? The case of China," Australian Economic Papers, Wiley Blackwell, vol. 60(4), pages 736-762, December.
    2. Muhammad Hidayat & Ranti Darwin & M. Fikry Hadi, 2020. "Does Energy Infrastructure Reduce Inequality Inter-regional in Riau Province, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 160-164.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Shahbaz & Ijaz Rehman & Nurul Mahdzan, 2014. "Linkages between income inequality, international remittances and economic growth in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1511-1535, May.
    2. Brida, Juan Gabriel & Carrera, Edgar J. Sanchez & Segarra, Verónica, 2020. "Clustering and regime dynamics for economic growth and income inequality," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 99-108.
    3. repec:thr:techub:10015:y:2021:i:1:p:276-288 is not listed on IDEAS
    4. Laura Policardo & Lionello F. Punzo & Edgar J. Sánchez Carrera, 2016. "Brazil and China: Two Routes of Economic Development?," Review of Development Economics, Wiley Blackwell, vol. 20(3), pages 651-669, August.
    5. Mohamed Ali Chroufa & Nouri Chtourou, 2022. "Inequality and Growth in Tunisia: New Evidence from Threshold Regression," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 901-924, September.
    6. Gravina, Antonio Francesco & Lanzafame, Matteo, 2021. "Finance, globalisation, technology and inequality: Do nonlinearities matter?," Economic Modelling, Elsevier, vol. 96(C), pages 96-110.
    7. Ibrahim Mohamed Ali Ali, 2023. "Income inequality, economic growth, and structural changes in Egypt: new insights from quantile cointegration approach," Economic Change and Restructuring, Springer, vol. 56(1), pages 379-407, February.
    8. María Hierro & Adolfo Maza, 2015. "From Discrete To Continuous-Time Transition Matrices In Intra-Distribution Dynamics Analysis: An Application To Per Capita Wealth In Europe," Bulletin of Economic Research, Wiley Blackwell, vol. 67(3), pages 227-235, July.
    9. Dierk Herzer & Philipp Hühne & Peter Nunnenkamp, 2014. "FDI and Income Inequality—Evidence from Latin American Economies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 778-793, November.
    10. Muhammad Shahbaz & Qazi Muhammad Adnan Hye & Muhammad Shahbaz Shabbir, 2013. "Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(10), pages 113-124, October.
    11. Temple, Jonathan & Ying, Huikang, 2014. "Life During Structural Transformation," CEPR Discussion Papers 10297, C.E.P.R. Discussion Papers.
    12. Raul Ramos & Vicente Royuela, 2014. "“Income inequality in Europe. Analysis of recent trends at the regional level”," IREA Working Papers 201425, University of Barcelona, Research Institute of Applied Economics, revised Oct 2014.
    13. Zhang, Muyang & Zhou, Guangsu & Fan, Gang, 2020. "Political Control and Economic Inequality: Evidence from Chinese Cities," China Economic Review, Elsevier, vol. 61(C).
    14. Viktor Stojkoski & Zoran Utkovski & Ljupco Kocarev, 2016. "The Impact of Services on Economic Complexity: Service Sophistication as Route for Economic Growth," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-29, August.
    15. Vigenina, Denotes & Kritikos, Alexander S., 2004. "The individual micro-lending contract: is it a better design than joint-liability?: Evidence from Georgia," Economic Systems, Elsevier, vol. 28(2), pages 155-176, June.
    16. Anwar, Amar Iqbal & Hasse, Rolf & Rabbi, Fazli, 2008. "Location Determinants of Indian Outward Foreign Direct Investment: How Multinationals Choose their Investment Destinations?," MPRA Paper 47397, University Library of Munich, Germany.
    17. Muhammad Shahbaz & Mita Bhattacharya & Mantu Kumar Mahalik, 2017. "Finance and income inequality in Kazakhstan: evidence since transition with policy suggestions," Applied Economics, Taylor & Francis Journals, vol. 49(52), pages 5337-5351, November.
    18. Mohammad Mafizur Rahman & Muhammad Shahbaz, 2013. "Do Imports and Foreign Capital Inflows Lead Economic Growth? Cointegration and Causality Analysis in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 59-81, March.
    19. Antonio Francesco Gravina, 2020. "Nonlinearities and the Determinants of Inequality: New Panel Evidence," Working Papers 2020.22, Fondazione Eni Enrico Mattei.
    20. Mirko KRUSE & Jan WEDEMEIER, 2022. "Smart specialisation policy strategy for interregional cooperation: pushing less-developed regions," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 13, pages 254-270, June.
    21. Jaewoo Cho & Jae Hong Kim & Yonsu Kim, 2019. "Metropolitan governance structure and growth–inequality dynamics in the United States," Environment and Planning A, , vol. 51(3), pages 598-616, May.

    More about this item

    Keywords

    Economic agglomeration; income inequality; economic growth; gini ratio; panel data;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:journl:v:10:y:2018:i:2:p:205-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JEP/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.