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Indonesia’s Changing Economic Geography

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Author Info

  • Hal Hill

    ()
    (Division of Economics, RSPAS, The AUstralian National University)

  • Budy Resosudarmo

    ()
    (Division of Economics, RSPAS, The AUstralian National University)

  • Yogi Vidyattama

    ()
    (Division of Economics, RSPAS, The AUstralian National University)

Abstract

Indonesia is the world’s largest archipelagic state, and one of the most spatially diverse nations on earth in its resource endowments, population settlements, location of economic activity, ecology and ethnicity. The regional socio-economic data base now extends over 30 years, and so it is possible to draw conclusions about the country’s regional development dynamics since the 1970s. In this paper, we examine economic growth, inequality, convergence, structural change and social indicators for a consolidated group of 26 provinces, ie, the 27 of the late Soeharto period excluding East Timor. Our major conclusions include the following: (a) There continues to be great diversity in economic and social outcomes, but growth and social progress have been remarkably even. The poorest regions, mainly located in Eastern Indonesia, have generally performed about as well as the national average. (b) The better performing regions are typically those that are the most ‘connected’ to the global economy. In this respect, Jakarta stands out as a special case, growing richer than the rest of the country over time. (c) As expected, conflict is particularly harmful to economic development, as illustrated in the case of Maluku and to a lesser extent Aceh. (d) There is no clear natural resource story, in that the performance of the resource-rich provinces has varied considerably.

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File URL: http://lp3e.fe.unpad.ac.id/wopeds/200713.pdf
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Bibliographic Info

Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 200713.

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Length: 49 pages
Date of creation: Nov 2007
Date of revision: Nov 2007
Handle: RePEc:unp:wpaper:200713

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Keywords: Economic Geography; economic growth; convergence; Indonesia;

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References

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Citations

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Cited by:
  1. Lidia Farré & Francesco Fasani, 2011. "Media Exposure and Internal Migration – Evidence from Indonesia," Working Papers 577, Barcelona Graduate School of Economics.
  2. Masagus M. Ridhwan & Henri L.F. de Groot & Piet Rietveld & Peter Nijkamp, 2011. "The Regional Impact of Monetary Policy in Indonesia," Tinbergen Institute Discussion Papers 11-081/3, Tinbergen Institute.
  3. Mitsuhiro Hayashi & Mitsuhiko Kataoka & Takahiro Akita, 2012. "Spatial Dimensions of Expenditure Inequality and the Role of Education in Indonesia: An Analysis of the 2008-2010 Susenas Panel," Working Papers, Research Institute, International University of Japan EMS_2012_21, Research Institute, International University of Japan.
  4. Krisztina Kis-Katos & Robert Sparrow, 2009. "Child work and schooling under trade liberalization in Indonesia," Discussion Paper Series, Department of International Economic Policy, University of Freiburg 8, Department of International Economic Policy, University of Freiburg, revised Mar 2009.
  5. Takahiro Akita & Puji Agus Kurniawan & Sachiko Miyata, 2011. "Structural Changes and Regional Income Inequality in Indonesia: A Bidimensional Decomposition Analysis," Asian Economic Journal, East Asian Economic Association, East Asian Economic Association, vol. 25(1), pages 55-77, 03.
  6. Breinlich, Holger & Ottaviano, Gianmarco & Temple, Jonathan, 2013. "Regional Growth and Regional Decline," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9568, C.E.P.R. Discussion Papers.
  7. Mumbunan, Sonny & Ring, Irene & Lenk, Thomas, 2012. "Ecological fiscal transfers at the provincial level in Indonesia," UFZ Discussion Papers 06/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
  8. Krisztina Kis-Katos & Robert Sparrow, 2011. "Child Labor and Trade Liberalization in Indonesia," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 722-749.
  9. Franciska von Heland & Julian Clifton & Per Olsson, 2014. "Improving Stewardship of Marine Resources: Linking Strategy to Opportunity," Sustainability, MDPI, Open Access Journal, vol. 6(7), pages 4470-4496, July.
  10. Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS), Department of Economics, Padjadjaran University 201310, Department of Economics, Padjadjaran University, revised Jun 2013.

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