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Are poor provinces catching‐up the rich provinces in Indonesia?

Author

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  • Hengky Kurniawan
  • Henri L. F. de Groot
  • Peter Mulder

Abstract

This paper examines the dynamics of socio‐economic inequalities in Indonesia over the last four decades. We apply a club convergence test to provincial panel data on four socio‐economic indicators: per capita gross regional product, the Gini coefficient, the school enrolment rate, and the fertility rate. We find that there is no single equilibrium steady state path for all these indicators in Indonesia. Instead, the data suggest that there exist two groups, with provinces converging within each of these two groups, but not between these groups. Finally, we identify the provinces that are catching‐up and those that are falling behind in terms of the various socio‐economic indicators. Este artículo explora la dinámica de las desigualdades socioeconómicas en Indonesia durante las últimas cuatro décadas. Se aplicó una prueba de clubes de convergencia a datos de panel provinciales respecto a cuatro indicadores socioeconómicos: producto regional bruto per cápita, el coeficiente de Gini, la tasa de escolarización y la tasa de fertilidad. Se encontró que no existe una única vía para alcanzar un equilibrio en estado estacionario para todos estos indicadores en Indonesia. En cambio, los datos sugieren que existen dos grupos, con provincias que convergen dentro de cada uno de estos dos grupos, pero no entre ellos. Por último, se identificaron las provincias que están avanzando más y las que se están quedando rezagadas en cuanto a los distintos indicadores socioeconómicos. 本稿では、インドネシアにおける社会経済的不平等の、過去40年の動向を検討する。4つの社会経済指標(1人当たりの域内総生産、ジニ係数、 就学率、出生率)に関する州のパネルデータにクラブ収束検定を適用する。インドネシアには、これらの指標のいずれにも定常均衡状態の経路がひとつもないことが分かる。その代わりに、データから、2つのグループが存在し、そのグループ間ではなく、それぞれのグループの中で州が収束していることが示唆される。最後に、複数の社会経済指標に関して、改善する州と後退する州を特定する。

Suggested Citation

  • Hengky Kurniawan & Henri L. F. de Groot & Peter Mulder, 2019. "Are poor provinces catching‐up the rich provinces in Indonesia?," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(1), pages 89-108, March.
  • Handle: RePEc:bla:rgscpp:v:11:y:2019:i:1:p:89-108
    DOI: 10.1111/rsp3.12160
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    Citations

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    Cited by:

    1. Aginta, Harry & Gunawan, Anang Budi & Mendez, Carlos, 2020. "Regional Income Disparities and Convergence Clubs in Indonesia: New District-Level Evidence 2000-2017," MPRA Paper 99079, University Library of Munich, Germany.
    2. Mitsuhiko Kataoka, 2022. "Cyclical shocks and spatial association of Indonesia's district‐level per capita income," Asian Economic Journal, East Asian Economic Association, vol. 36(3), pages 261-287, September.
    3. Carlos Mendez & Mitsuhiko Kataoka, 2021. "Disparities in regional productivity, capital accumulation, and efficiency across Indonesia: A club convergence approach," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 790-809, May.
    4. Ragdad Cani Miranti, 2021. "Is regional poverty converging across Indonesian districts? A distribution dynamics and spatial econometric approach," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 851-883, October.
    5. Nurhira Abdul Kadir & Heike Schütze & Kathryn M. Weston, 2021. "Educating Medical Students for Practice in a Changing Landscape: An Analysis of Public Health Topics within Current Indonesian Medical Programs," IJERPH, MDPI, vol. 18(21), pages 1-11, October.
    6. Tsovinar J. Karapetyan & Arpenik Muradyan & Vanine A. Yeranosyan & Erik M. Grigoryan, 2021. "The structural changes in Armenian Community budgets within the process of community consolidation," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 559-572, June.
    7. Mitsuhiko Kataoka & Al-Ikram Taupan Darangina, 2023. "Imperial Manila syndrome in poverty reduction: a province-level spatial distribution analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 7(1), pages 1-28, March.
    8. Anang Budi Gunawan & Carlos Mendez & Shigeru Otsubo, 2021. "Provincial income convergence clubs in Indonesia: Identification and conditioning factors," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2540-2575, December.
    9. Carlos Mendez, 2020. "Regional efficiency convergence and efficiency clusters," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 391-411, June.
    10. Felipe Santos‐Marquez & Carlos Mendez, 2021. "Regional convergence, spatial scale, and spatial dependence: Evidence from homicides and personal injuries in Colombia 2010–2018," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1162-1184, August.
    11. Mendez-Guerra, Carlos & Kataoka, Mitsuhiko, 2020. "Disparities in Regional Productivity, Capital Accumulation, and Efficiency across Indonesia: A Convergence Clubs Approach," MPRA Paper 99322, University Library of Munich, Germany.
    12. Ensar Yılmaz & Zeynep Kaplan, 2022. "Regional polarization in Turkey," Growth and Change, Wiley Blackwell, vol. 53(1), pages 410-431, March.
    13. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2022. "Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 274-281, July.

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