Does Geographic Factors Determine Local Economic Development?
The purpose of this paper is to analyze the influence of geographic characteristics on the local economic development. There are two important reasons related to that objective. First, study on this topic in the case of Indonesia is rather limited, especially in the field of local economic development of the country. Second, geographically, Indonesia is a heterogeneous country and its consequence is development policy should also consider the geographic characteristics of the country. The study estimates impact of some geographic variables on the Gross Domestic Regional Product (GDRP) per capita and GDRP density as indicators of local economic development with data of the districts in the Central Java province uses regression models. Geographic variables used in the model are distance to economic centres, location of districts, and a measure of clustering of economic activity. Other socio-economic variable is also used in the model, such as literacy rate which is one of the components of human development index (HDI). This study found that in general geography influences local economic performance; however, geography is not the only determinant of economic performance. It also suggests that study on geographic inequality not only apply “per capita approach” but also “density approach” to get a more comprehensive picture of the impact of geography on economic development.
|Date of creation:||Jun 2009|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Redding, Stephen & Venables, Anthony J., 2004.
"Economic geography and international inequality,"
Journal of International Economics,
Elsevier, vol. 62(1), pages 53-82, January.
- Redding, Stephen J. & Venables, Anthony J, 2000. "Economic Geography and International Inequality," CEPR Discussion Papers 2568, C.E.P.R. Discussion Papers.
- Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," CEP Discussion Papers dp0495, Centre for Economic Performance, LSE.
- Redding, Stephen & Venables, Anthony J., 2001. "Economic geography and international inequality," LSE Research Online Documents on Economics 3714, London School of Economics and Political Science, LSE Library.
- Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," International Trade 0103003, EconWPA.
- Lall, Somik V. & Chakravorty, Sanjoy, 2004. "Industrial Location and Spatial Inequality: Theory and Evidence from India," WIDER Working Paper Series 049, World Institute for Development Economic Research (UNU-WIDER).
- J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 81-105, January.
- Robert E. Hall & Charles I. Jones, 1999.
"Why do Some Countries Produce So Much More Output Per Worker than Others?,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 114(1), pages 83-116.
- Robert E. Hall & Charles I. Jones, 1998. "Why Do Some Countries Produce So Much More Output per Worker than Others?"," Working Papers 98007, Stanford University, Department of Economics.
- Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
- Allen J. Scott, 2009. "World Development Report 2009: reshaping economic geography," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 583-586, July.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:15817. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.