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Ignoring Spatial Factors

In: Monetary Whispers Across Space

Author

Listed:
  • Iwan J. Azis

    (Cornell University, Dyson School of Applied Economics)

Abstract

It was argued in Chap. 2 that any development process will involve centripetal-agglomeration forces. Left unattended, the development outcome would be tainted by growing inequality. In Chap. 3 , the evidence was clearly shown that the inequality between regions in Indonesia is high by international standards and on the rise. This is despite the fact that various policies have been implemented to improve development outside of Jawa and eastern Indonesia. A fairly large amount of expenditure and investment was made and a substantial number of infrastructure had been built with the expectation that they would narrow the development gap between developed and less developed regions. Why did those policies not produce the intended outcome and why did the huge amount of built infrastructure fail to boost the economy and multipliers of less developed regions? Was the amount insufficient, or was it due to resource misallocation and mistargeted infrastructure?

Suggested Citation

  • Iwan J. Azis, 2026. "Ignoring Spatial Factors," Springer Books, in: Monetary Whispers Across Space, chapter 0, pages 61-75, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-4625-1_4
    DOI: 10.1007/978-981-95-4625-1_4
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