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Spatial Concentration of the Informal Small and Cottage Industry in Indonesia

Author

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  • Aloysius Gunadi, Brata

Abstract

This paper discusses the spatial concentration of the small and cottage industry without legal entity in Indonesia. The study period is 1998-2004 or a period after economic crisis which commonly known as the ‘era reformasi’ (reformation era). By employing the Herfindahl index, this study found an increase in the spatial concentration of the informal small and cottage industry during this period. It argues that reformation tend to increase the spatial concentration of the informal small and cottage industry. Beside the economic crisis that have suffered urban and Java areas, other possible explanation on the connection between trend of the concentration and the reformation is what commonly known as the cost of formality.

Suggested Citation

  • Aloysius Gunadi, Brata, 2007. "Spatial Concentration of the Informal Small and Cottage Industry in Indonesia," MPRA Paper 12622, University Library of Munich, Germany, revised 2008.
  • Handle: RePEc:pra:mprapa:12622
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    File URL: https://mpra.ub.uni-muenchen.de/12622/1/MPRA_paper_12622.pdf
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    References listed on IDEAS

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    1. Anna Wetterberg & Sudarno Sumarto & Lant Pritchett, 1999. "A National Snapshot of the Social Impact of Indonesia's Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(3), pages 145-152.
    2. Friedrich Schneider & Robert Klinglmair, 2004. "Shadow economies around the world: what do we know?," Economics working papers 2004-03, Department of Economics, Johannes Kepler University Linz, Austria.
    3. Hal HILL & Takashi SHIRAISHI, 2007. "Indonesia After the Asian Crisis," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(1), pages 123-141.
    4. Albert Berry & Edgard Rodriguez & Henry Sandee, 2001. "Small And Medium Enterprise Dynamics In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 363-384.
    5. Parker, Simon C., 2005. "The Economics of Entrepreneurship: What We Know and What We Don't," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 1(1), pages 1-54, May.
    6. David B. Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital: Determinants and Impact," Papers on Entrepreneurship, Growth and Public Policy 2004-37, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    7. Henderson, J Vernon & Kuncoro, Ari, 1996. "Industrial Centralization in Indonesia," World Bank Economic Review, World Bank Group, vol. 10(3), pages 513-540, September.
    8. Daniel Suryadarma & Wenefrida Widyanti & Asep Suryahadi & Sudarno Sumarto, 2006. "From Access to Income : Regional and Ethnic Inequality in Indonesia," Development Economics Working Papers 22547, East Asian Bureau of Economic Research.
    9. Fitria Fitrani & Bert Hofman & Kai Kaiser, 2005. "Unity in diversity? The creation of new local governments in a decentralising Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 57-79.
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    Citations

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    Cited by:

    1. Syeda Khaleda & Yuji Murayama, 2013. "Geographic Concentration and Development Potential of Poultry Microenterprises and Value Chain: A Study Based on Suitable Sites in Gazipur, Bangladesh," Social Sciences, MDPI, Open Access Journal, vol. 2(3), pages 1-21, August.
    2. Khan, Rana Ejaz Ali & Khan, Tasnim & Maqsood, Muhammad Farqan, 2010. "Export potential of cottage industry: a case study of Sialkot (Pakistan)," MPRA Paper 34427, University Library of Munich, Germany.

    More about this item

    Keywords

    spatial concentration; small and cottage industry; reformation; Indonesia;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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