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Linguistic clustering and aggregate productive efficiency in Indonesia

Author

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  • Alexandre Repkine

Abstract

Purpose - The purpose of this study is to explore the link between aggregate production efficiency and the extent of linguistic clustering in Indonesia. Design/methodology/approach - The author draws on the stochastic frontier model and applies it to the data on Indonesian provinces to compute the effects of various determinants on these provinces' aggregate production efficiency. The key determinant is the spatial index of linguistic clustering that the author believes has never been applied before in this context. Findings - Linguistic clustering is an important determinant of aggregate production efficiency. Linguistic diversity is positively associated with productive efficiency if members of a specific linguistic group are not clustered beyond a certain level. Originality/value - To the best of the author’s knowledge, this is the first study that links the spatial index of linguistic clustering (because of Massey and Danton) to production efficiency. In other words, the contribution of this study is to introduce a geographical dimension to the mainstream analysis of the association between ethnic diversity and economic performance.

Suggested Citation

  • Alexandre Repkine, 2023. "Linguistic clustering and aggregate productive efficiency in Indonesia," Applied Economic Analysis, Emerald Group Publishing Limited, vol. 31(92), pages 126-144, June.
    • Handle: RePEc:eme:aeapps:aea-04-2022-0124
    DOI: 10.1108/AEA-04-2022-0124
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