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Spatial Dynamic Of Small And Medium Enterprises In The Recent Economic Crisis

Author

Listed:
  • Aloysius Gunadi Brata

    (University of Atma Jaya Yogyakarta)

Abstract

This article discusses the spatial dynamic of small and medium enterprises (SMEs) in Indonesia during the crisis (1998-2000), focusing on the SMEs without legal entity, except agriculture activities. The spatial distribution of SMEs seems increasing which measured by Herfindahl index applied on employment and number of establishment. The study also applies an econometric approach to investigate the determinants of SMEs’ employment. The findings of empirical analysis are that the regional output (GDRP) and population have positive impact on the employment while regional minimum wage (UMR) have an opposite impact. This study confirms previous studies that SMEs in Java more severe than in other provinces.

Suggested Citation

  • Aloysius Gunadi Brata, 2004. "Spatial Dynamic Of Small And Medium Enterprises In The Recent Economic Crisis," Urban/Regional 0409003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpur:0409003
    Note: Type of Document - pdf; pages: 7
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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. Asep Suryahadi & Wenefrida Widyanti & Daniel Perwira & Sudarno Sumarto, 2003. "Minimum Wage Policy And Its Impact On Employment In The Urban Formal Sector," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(1), pages 29-50.
    3. Takahiro Akita, 2002. "Income Inequality in Indonesia," Working Papers EMS_2002_02, Research Institute, International University of Japan.
    4. Takahiro Akita, 2002. "Regional Income Inequality In Indonesia And The Initial Impact Of The Economic Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(2), pages 201-222.
    5. Örjan Sjöberg & Fredrik Sjöholm, 2004. "Trade Liberalization and the Geography of Production: Agglomeration, Concentration, and Dispersal in Indonesia’s Manufacturing Industry," Economic Geography, Taylor & Francis Journals, vol. 80(3), pages 287-310, July.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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