IDEAS home Printed from https://ideas.repec.org/a/bla/asiapr/v3y2008i1p42-61.html

Globalization, Inequality, and Local‐level Dynamics: Indonesia and the Philippines

Author

Listed:
  • Hal HILL

Abstract

Subnational disparities and center–region relations are increasingly important issues in both the development economics literature and East Asian policy circles. Almost all developing countries in East Asia are actively decentralizing power and resources from the center. Analytically, there is growing interest in spatial economics, arising out of the fusion of economics and geography. This paper examines these issues with reference to Indonesia and the Philippines. Both countries are well suited to such a study: they are the two largest archipelagic nations in the world, they both feature great subnational diversity, and they have both adopted major decentralization programs, in similar circumstances. We conclude that, in aggregate, there have been no major changes in regional inequality in either country, although this conclusion is sensitive to the selection of economic indicators. In general, the regions that are the best connected to the global economy have grown more rapidly.

Suggested Citation

  • Hal HILL, 2008. "Globalization, Inequality, and Local‐level Dynamics: Indonesia and the Philippines," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 42-61, June.
    • Handle: RePEc:bla:asiapr:v:3:y:2008:i:1:p:42-61
    DOI: 10.1111/j.1748-3131.2008.00087.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1748-3131.2008.00087.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1748-3131.2008.00087.x?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. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    2. Takahiro Akita, 2002. "Regional Income Inequality In Indonesia And The Initial Impact Of The Economic Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(2), pages 201-222.
    3. Pranab Bardhan, 2002. "Decentralization of Governance and Development," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 185-205, Fall.
    4. Balisacan, Arsenio M. & Hill, Hal (ed.), 2003. "The Philippine Economy: Development, Policies, and Challenges," OUP Catalogue, Oxford University Press, number 9780195158984.
    5. Mr. Robert M Burgess & Mr. V. Haksar, 2005. "Migration and Foreign Remittances in the Philippines," IMF Working Papers 2005/111, International Monetary Fund.
    6. Jorge Garcia Garcia & Lana Soelistianingsih, 1998. "Why Do Differences in Provincial Incomes Persist in Indonesia?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(1), pages 95-120.
    7. Takahiro Akita, 2002. "Income Inequality in Indonesia," Working Papers EMS_2002_02, Research Institute, International University of Japan.
    8. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    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. Mitsuhiko Kataoka, 2016. "Interprovincial efficiency differentials in Indonesia's pre-and post-crisis economy," ERSA conference papers ersa16p412, European Regional Science Association.
    2. Omar Shahabudin McDoom & Celia Reyes & Christian Mina & Ronina Asis, 2019. "Correction to: Inequality Between Whom? Patterns, Trends, and Implications of Horizontal Inequality in the Philippines," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 965-965, October.
    3. Takatoshi ITO & Akira KOJIMA & Colin McKENZIE & Shujiro URATA, 2009. "Editors’ Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 4(1), pages 1-18, June.
    4. Andrés Rodríguez-Pose & Roberto Ezcurra, 2010. "Does decentralization matter for regional disparities? A cross-country analysis," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 619-644, September.
    5. Takahiro AKITA, 2008. "Comment on “Globalization, Inequality, and Local‐level Dynamics: Indonesia and the Philippines”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 64-66, June.
    6. Takahiro Akita & Sachiko Miyata, 2018. "Spatial Inequalities in Indonesia, 1996–2010: A Hierarchical Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 829-852, August.
    7. Muhammad Haseeb & Tulus Suryanto & Nira Hariyatie Hartani & Kittisak Jermsittiparsert, 2020. "Nexus Between Globalization, Income Inequality and Human Development in Indonesian Economy: Evidence from Application of Partial and Multiple Wavelet Coherence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 723-745, February.
    8. Arief Anshory Yusuf & Andy Sumner & Irlan Adiyatma Rum, 2014. "Twenty Years of Expenditure Inequality in Indonesia, 1993-2013," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 243-254, August.
    9. Jorge Martinez-Vazquez & Santiago Lago-Peñas & Agnese Sacchi, 2017. "The Impact Of Fiscal Decentralization: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 1095-1129, September.
    10. Sugiyarto, Ardi & Lee, Boon L. & Wilson, Clevo, 2025. "Narrowing the gap: Dynamics of Indonesia's public expenditure performance in economically lagging districts," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 2299-2318.
    11. Masahisa Fujita & Nobuaki Hamaguchi, 2011. "Regional Integration of Production Systems and Spatial Income Disparities in East Asia," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume II, chapter 11, Edward Elgar Publishing.
    12. Mitsuhiro Hayashi & Mitsuhiko Kataoka & Takahiro Akita, 2014. "Expenditure Inequality in Indonesia, 2008–2010: A Spatial Decomposition Analysis and the Role of Education," Asian Economic Journal, East Asian Economic Association, vol. 28(4), pages 389-411, December.
    13. Nobuaki Hamaguchi & Wei Zhao, 2011. "Economic Integration and Regional Disparities in East Asia," Chapters, in: Masahisa Fujita & Ikuo Kuroiwa & Satoru Kumagai (ed.), The Economics of East Asian Integration, chapter 15, Edward Elgar Publishing.

    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. Hal Hill & Budy Resosudarmo & Yogi Vidyattama, 2008. "Indonesia'S Changing Economic Geography," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(3), pages 407-435.
    2. Takahiro Akita & Sachiko Miyata, 2018. "Spatial Inequalities in Indonesia, 1996–2010: A Hierarchical Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 829-852, August.
    3. Armida Alisjahbana & Takahiro Akita, 2020. "Economic Tertiarization and Regional Income Inequality in a Decentralized Indonesia: A Bi-dimensional Inequality Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 51-80, August.
    4. 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, vol. 25(1), pages 55-77, March.
    5. 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 EMS_2012_21, Research Institute, International University of Japan.
    6. Mitsuhiko Kataoka, 2016. "Interprovincial efficiency differentials in Indonesia's pre-and post-crisis economy," ERSA conference papers ersa16p412, European Regional Science Association.
    7. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2023. "The Influence of Investment, Energy Infrastructure, and Human Capital Towards Convergence of Regional Disparities in Sumatra Island, Indonesia; Using Oil and Gas Data and Without Oil and Gas," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 139-149, July.
    8. McCulloch, Neil & Sjahrir, Bambang Suharnoko, 2008. "Endowments, location or luck ? evaluating the determinants of sub-national growth in decentralized Indonesia," Policy Research Working Paper Series 4769, The World Bank.
    9. Mitsuhiko Kataoka, 2018. "Correction to: Inequality convergence in inefficiency and interprovincial income inequality in Indonesia for 1990–2010," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 315-315, August.
    10. World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Publications - Reports 14632, The World Bank Group.
    11. Farzanegan, Mohammad Reza & Lessmann, Christian & Markwardt, Gunther, 2018. "Natural resource rents and internal conflicts: Can decentralization lift the curse?," Economic Systems, Elsevier, vol. 42(2), pages 186-205.
    12. Tirtosuharto, Darius, 2013. "Regional Inequality in Indonesia: Did Convergence Occur Following the 1997 Financial Crisis?," MPRA Paper 70797, University Library of Munich, Germany.
    13. Takahiro Akita, 2002. "Regional Income Inequality In Indonesia And The Initial Impact Of The Economic Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(2), pages 201-222.
    14. Takahiro Akita & Armida Salsiah Alisjahbana, 2026. "Special economic zones, COVID-19 pandemic, and interprovincial income inequality in the Indonesian manufacturing industry," Letters in Spatial and Resource Sciences, Springer, vol. 19(1), pages 1-24, December.
    15. Szczepaniak, Małgorzata & Geise, Andrzej & Bariyah, Nurul, 2022. "Impact of institutional determinants on income inequalities in Indonesia during the Era Reformasi," Journal of Asian Economics, Elsevier, vol. 82(C).
    16. M A B Siddique & Heru Wibowo & Yanrui Wu, 2014. "Fiscal Decentralisation and Inequality in Indonesia: 1999-2008," Economics Discussion / Working Papers 14-22, The University of Western Australia, Department of Economics.
    17. Asep Suryahadi & Sudarno Sumarto & Daniel Suryadarma & Wenefrida Dwi Widyanti, "undated". "Dari Akses hingga Pendapatan: Ketimpangan Antarwilayah dan Antaretnis di Indonesia," Working Papers 3463, Communications Section.
    18. Mitsuhiko Kataoka, 2013. "Capital Stock Estimates by Province and Interprovincial Distribution in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 27(4), pages 409-428, December.
    19. Rus’an Nasrudin, 2016. "The Impact of Lagging-Region Status on District Poverty in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 62, pages 30-43, April.
    20. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, "undated". "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Working Papers 364, Communications Section.

    More about this item

    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:bla:asiapr:v:3:y:2008:i:1:p:42-61. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jcerrjp.html .

    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.