Language：English   Publishing type：Research paper (international conference proceedings)  

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Language：English   Publishing type：Research paper (scientific journal)   Publisher：WILEY-BLACKWELL  

Based on the 2008-2010 Susenas panel data, this study examines expenditure inequality from spatial perspectives in Indonesia, using three decomposition methods: (i) a conventional Theil index decomposition; (ii) an alternative Theil index decomposition proposed by Elbers et al. (2008); and (iii) the Blinder-Oaxaca decomposition. Our results show that overall inequality in per capita expenditure increases between 2008 and 2010, which coincides with a rising trend in the official Gini coefficient. The contribution of inequality within urban and rural areas to total inequality is larger than that of inequality between urban and rural areas. Looking within urban and rural areas, urban inequality is significantly higher than rural inequality. Java-Bali in particular records very high urban inequality. Overall, urban inequality increases, urban-rural inequality remains stable, rural inequality decreases, and inequality at the national level increases. Although urban-rural inequality has a relatively low share in overall inequality, the share is not small enough to ignore its impact. Furthermore, when using the alternative decomposition method, the contribution of urban-rural inequality increases substantially. The present study also found that educational differences appear to have played an important role in expenditure inequality within urban areas and between urban and rural areas.

DOI： 10.1111/asej.12042

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Language：English   Publishing type：Research paper (scientific journal)  

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Language：English   Publishing type：Research paper (scientific journal)   Publisher：WILEY-BLACKWELL  

We use the perpetual inventory method to estimate gross fixed capital stock at the provincial level in Indonesia. We employ a relatively long series of past annual investments at constant prices for 1983-2007 and a province-specific survival function for capital. For this purpose, we use published data on provincial income accounts, input-output tables, and surveys from existing studies. Capital was found to be over-concentrated in the Java-Bali region and inefficiently distributed among provinces. This distribution contributed to national growth in the majority of the sample years.

DOI： 10.1111/asej.12021

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Language：English   Publishing type：Research paper (scientific journal)  

Under market-oriented factor mobility, capital and labor relocate to regions offering higher returns. In consequence, the more factor inputs go to subnational regions with higher productivities, the greater the increase in national output. Interregional factor mobility reflects the output growth of a region and, in turn, a nation. However, in Indonesia, the extent to which interregional factor mobility has been efficiently distributed has been only infrequently examined because of constraints on provincial capital data. Using the provincial capital estimates from Kataoka [10], the present study examined efficiency in interregional resource allocation by observing actual and optimal levels of factor inputs and outputs for 1986-2007 in Indonesia. To achieve this objective, we employed two empirical results: panel data analysis in the province-level production functions and computation of welfare-maximizing interprovincial input allocation. Given these empirical results, several instances of uneven factor-input distribution such as capital overconcentration in the Java-Bali region, different dispositions in capital distribution among resource-rich provinces, labor surplus in the remote agriculture-dominated off-Java provinces, and labor surplus in Jakarta's commuting province of West Java were found. More interestingly, a structural shift from a pro-efficiency interprovincial allocation before the year 2002 to a pro-equity allocation afterwards was observed.

DOI： 10.2457/srs.42.911

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Language：English   Publishing type：Research paper (bulletin of university, research institution)  

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Language：English   Publishing type：Research paper (scientific journal)  

This study proposes a squared employment-weighted coefficient of variation through a shift-share decomposition analysis, addressing the disadvantage of Esteban's (Reg. Sci. Urban Econ. 30:353-364, 2000) variance measure. The aim is to analyze the role of each shift-share component in explaining interregional inequality in productivity per worker. Applying this inequality decomposition approach to prefectural data in post-war Japan generates several empirical results. One of the most interesting results is that the productivity differential component, which can be attributed to the region-specific sectoral productivity differential, was a dominant contributor throughout the period, although its values varied by year. Considering that the productivity differential component as an index of accumulated past investments within a given sector, its yearly variation indicates alternating policy shifts in the regional allocation of investment. This is consistent with the empirical result of Kataoka (Rev. Urban Reg. Dev. Stud. 17:115-139, 2005) that the regional development policy in post-war Japan alternated between efficiency-oriented investment allocation, which implies greater investment in higher-productivity regions, and equity-oriented investment allocation, which implies greater investment in lower-productivity regions. Moreover, the divergence in the interprefectural inequality of sectoral productivity differentials and the convergence in the interprefectural inequality of the sectoral employment share, observed from the mid-1970s, imply the advance of interregional division of labor, which may result from the agglomeration of the knowledge-intensive activities in Tokyo regions. This interregional relocation was described as Tokyo monopolar regional system by Fujita and Tabuchi (Reg. Sci. Urban Econ. 27:643-667, 1997). © 2010 Springer-Verlag.

DOI： 10.1007/s12076-010-0045-5

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Language：English   Publishing type：Research paper (scientific journal)  

Using the Theil population-weighted method for per capita GDP and the variance in a shift-share analysis on labor productivity, we conduct a comprehensive interregional income inequality decomposition analysis on Indonesia before and after the 1998 economic crisis. Interregional income inequality is largely determined by the interregional inequality in the productivity differential component due to the region's specific sector-by-sector productivity differentials—the result of investments accumulated in technology, public infrastructure and human capital. Although the interregional inequality in the productivity differentials show a declining trend throughout the period under observation, they should have decreased further, considering the active implementation of policies aimed at balanced regional development. However, the results are still far below the target levels because of the effects of economic agglomeration. An examination of non-productivity factors shows that the interregional inequality in the employment rate has become the dominant factor after the crisis, whereas the active population rate was dominant before. The widening of the interregional employment gap is a new concern for Indonesia. The relative decrease in urban employment rates in 2003-2006 and the predominance of inequality in higher educational attainments within the urban sector reported by Akita and Miyata[5]suggest a growing deterioration in the labor market efficiency in urban regions. © 2010, JAPAN SECTION OF THE REGIONAL SCIENCE ASSOCIATION INTERNATIONAL. All rights reserved.

DOI： 10.2457/srs.40.1061

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Language：English   Publishing type：Research paper (scientific journal)  

The main objective of this paper is to examine the effects of the changes in economic conditions and government policies on the output growth of the Kyushu region between 1965 and 1990. This study uses the extended growth-factor decomposition method based on a three-region Japanese interregional input-output system consisting of Kyushu, Kanto, and the rest of Japan. The growth pattern of Kyushu changed noticeably over the period. The primary drivers of growth changed from the expansion of final demand within Kyushu to direct and indirect effects from outside Kyushu. This unambiguously indicates that Kyushu has facilitated interregional and international interdependence. The emergence of the processing and assembling sector, together with the construction of new networks of trunk railway lines, expressways, and communications, promoted closer interregional industrial linkages between Kyushu, Kanto, and the rest of Japan. In addition, the offshore transfer of production from Kyushu to Southeast Asia after the Plaza Accord Agreement strengthened Kyushu's international industrial linkages.

DOI： 10.1111/1467-940X.00046

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