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Spatial autocorrelation and non-farm rural enterprises in Indonesia

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  • Gibson, John
  • Olivia, Susan

Abstract

Non-farm rural enterprises (NFRE) are increasingly studied because of their role in poverty reduction. However, existing studies of the effects of infrastructure on NFRE may give incorrect inferences because they typically fail to account for spatial effects. Such effects could reflect either spatial errors due to excluded local effects or spatial lags due to excluded interactions, such as between households switching out of farm work. We use rural investment climate survey data from Indonesia that allow distances between each household to be measured so that spatial effects can be modeled to assess the bias from ignoring such effects.

Suggested Citation

  • Gibson, John & Olivia, Susan, 2007. "Spatial autocorrelation and non-farm rural enterprises in Indonesia," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10387, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare07:10387
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    References listed on IDEAS

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    Cited by:

    1. Gibson, John & McKenzie, David, 2007. "Using the global positioning system in household surveys for better economics and better policy," Policy Research Working Paper Series 4195, The World Bank.
    2. Owoo, Nkechi S. & Naudé, Wim, 2014. "Non-Farm Enterprise Productivity and Spatial Autocorrelation in Rural Africa: Evidence from Ethiopia and Nigeria," IZA Discussion Papers 8295, Institute for the Study of Labor (IZA).
    3. Somnath Chattopadhyay & Amita Majumder & Hasanur Jaman, 2014. "Decomposition of inter-regional poverty gap in India: a spatial approach," Empirical Economics, Springer, vol. 46(1), pages 65-99, February.
    4. John Gibson & David McKenzie, 2007. "Using the Global Positioning System (GPS) in Household Surveys For Better Economics and Better Policy," Working Papers in Economics 07/04, University of Waikato.

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