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Spatial autocorrelation and non-farm rural enterprises in Indonesia

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  • Gibson, John
  • Olivia, Susan

Abstract

Non-farm rural enterprises (NFRE) are increasingly studied because of their role in poverty reduction. However, existing studies of the effects of infrastructure on NFRE may give incorrect inferences because they typically fail to account for spatial effects. Such effects could reflect either spatial errors due to excluded local effects or spatial lags due to excluded interactions, such as between households switching out of farm work. We use rural investment climate survey data from Indonesia that allow distances between each household to be measured so that spatial effects can be modeled to assess the bias from ignoring such effects.

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand with number 10387.

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Date of creation: 2007
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Handle: RePEc:ags:aare07:10387

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Keywords: Infrastructure; Non-farm enterprises; Spatial statistics; Indonesia; Community/Rural/Urban Development;

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Cited by:
  1. John Gibson & David McKenzie, 2007. "Using the Global Positioning System (GPS) in Household Surveys For Better Economics and Better Policy," Working Papers in Economics 07/04, University of Waikato, Department of Economics.
  2. Gibson, John & McKenzie, David, 2007. "Using the global positioning system in household surveys for better economics and better policy," Policy Research Working Paper Series 4195, The World Bank.
  3. Somnath Chattopadhyay & Amita Majumder & Hasanur Jaman, 2014. "Decomposition of inter-regional poverty gap in India: a spatial approach," Empirical Economics, Springer, vol. 46(1), pages 65-99, February.

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