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Spatial Concentration of the Informal Small and Cottage Industry in Indonesia

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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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    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, 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.
    3. Syeda Khaleda & Yuji Murayama, 2015. "Identification of Suitability of Sites for Microenterprises for Value Chain Development: A Study in Gazipur District, Bangladesh," Growth and Change, Wiley Blackwell, vol. 46(2), pages 274-291, June.

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    More about this item

    Keywords

    spatial concentration; small and cottage industry; reformation; Indonesia;
    All these keywords.

    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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