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Regional Economic Disparities In Eastern Indonesia And Determinants: Comparative Analysis Of Origin District And New District

Author

Listed:
  • Jihad LUKIS PANJAWA

    (Magister Dept. Of Economics and Development Studies, Graduate School, University of Sebelas Maret (UNS), Indonesia)

  • Bhimo RIZKY SAMUDRO

    (Dept. Of Economy Development, University of Sebelas Maret (UNS), Indonesia)

  • Albertus MAQNUS SOESILO

    (Dept. Of Economy Development, University of Sebelas Maret (UNS), Indonesia)

Abstract

The objective of this research is to know specifically the difference of regional economic disparity and expansion in districts / cities in eastern Indonesia, as well as determinant of disparity base on development indicators covering economic growth, decentralization policy and quality of human resources. This is a quantitative study using econometric methodology. In this methodology, regression with the dummy variable is used to estimate the data. The results showed differences between origin district and new district, where new district showed higher disparities than origin district. Thus, according to Myrdall Theory, regional economic development disparities are caused by larger backwash effects than spread effects occur in Eastern Indonesia. Another important contribution is that fiscal decentralization plays an important role in reducing regional income disparities in new district, while economic growth and human development index have no significant effect on disparities. In the origin district shows different impacts related to fiscal decentralization in which the policy has a significant positive effect on the disparity, while the human development index has a significant negative effect and economic growth has no significant effect on the disparity.

Suggested Citation

  • Jihad LUKIS PANJAWA & Bhimo RIZKY SAMUDRO & Albertus MAQNUS SOESILO, 2018. "Regional Economic Disparities In Eastern Indonesia And Determinants: Comparative Analysis Of Origin District And New District," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 117-124, June.
    • Handle: RePEc:hrs:journl:v:x:y:2018:i:1:p:117-124
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    File URL: http://www.rsijournal.eu/ARTICLES/June_2018/10.pdf
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    Cited by:

    1. Imade Yoga PRASADA & Aura DHAMIRA & Agus Dwi NUGROHO, 2021. "Effects Of Climatic Factors On The Productivity Of Smallholder Rubber Plantations In South Sumatra, Indonesia," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 109-121, June.

    More about this item

    Keywords

    Regional Disparity; Development Indicator; Regional Status;
    All these keywords.

    JEL classification:

    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • 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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