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Polarization and Local Conflicts in Post Decentralization Indonesia

Author

Listed:
  • Azis Iwan J.

    (Cornell University, 7 Lowell Place, Ithaca, NY, USA)

  • Pratama Alvin

    (Gunadarma University, Depok, Indonesia)

Abstract

Exploring the hypothesis that socio-economic discrimination contributes to conflict occurrence, we show that the experience of a large country that have gone through a big-bang shift from centralized to decentralized system and introduced direct local elections, confirms the link. Using the case of Indonesia, and by controlling for poverty, demand-induced resource scarcity, and institutional variables, it is revealed that income polarization and inequality at the provincial level explain the occurrence of violent conflict (causing at least 1 death), be it for total or for different types. The results are robust to a series of model specifications. For understanding its impact on conflict, polarization is found more important than income inequality as a measure of socio-economic discrimination.

Suggested Citation

  • Azis Iwan J. & Pratama Alvin, 2020. "Polarization and Local Conflicts in Post Decentralization Indonesia," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(2), pages 1-28, May.
    • Handle: RePEc:bpj:pepspp:v:26:y:2020:i:2:p:28:n:4
    DOI: 10.1515/peps-2019-0050
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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