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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.

Suggested Citation

  • Gibson, John & Olivia, Susan, 2007. "Spatial autocorrelation and non-farm rural enterprises in Indonesia," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10387, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare07:10387
    DOI: 10.22004/ag.econ.10387
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    File URL: https://ageconsearch.umn.edu/record/10387/files/cp07gi01.pdf
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    Cited by:

    1. 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.
    2. John Gibson & David McKenzie, 2007. "Using Global Positioning Systems in Household Surveys for Better Economics and Better Policy," The World Bank Research Observer, World Bank, vol. 22(2), pages 217-241, September.
    3. John Gibson & David McKenzie, 2007. "Using Global Positioning Systems in Household Surveys for Better Economics and Better Policy," The World Bank Research Observer, World Bank, vol. 22(2), pages 217-241, September.
    4. Owoo, Nkechi S. & Naudé, Wim, 2014. "Non-Farm Enterprise Productivity and Spatial Autocorrelation in Rural Africa: Evidence from Ethiopia and Nigeria," IZA Discussion Papers 8295, Institute of Labor Economics (IZA).

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    Keywords

    Community/Rural/Urban Development;

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