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Inter-Island Economic Linkages and Connections in Indonesia

Author

Listed:
  • Budy P. Resosudarmo

    (Indonesia Project The Arndt-Corden Division of Economics Research School of Pacific and Asian Studies The Australian National University. Correspondent)

  • Djoni Hartono

    (Lecturer, Faculty of Economics University of Indonesia)

  • Ditya A. Nurdianto

    (The Arndt-Corden Division of Economics Research School of Pacific and Asian Studies The Australian National University)

Abstract

Economic performances across regions in Indonesia vary a lot. For example, in the early 2000s, gross regional domestic product in East Kalimantan and Riau was respectively 23 and 20 times higher than that in Maluku. This raises the question on how well economic linkages and connections among regions operate in Indonesia. This paper develops an inter-regional input-output table for Indonesia and utilizes it to understand the economic structures and linkages among regions in Indonesia. This paper confirms that Java-Bali is the centre of the Indonesian economy. The other regions, namely Sumatra, Kalimantan, Sulawesi, and Eastern Indonesia, are more connected to Java-Bali than to each other. Economic connections between Java-Bali and Sumatra are the strongest among any inter-regional economic connections in the country. The four key traded products connecting Java-Bali with the other regions are basic metals, petrochemical products, processed food and beverages, and oil refinery products.

Suggested Citation

  • Budy P. Resosudarmo & Djoni Hartono & Ditya A. Nurdianto, 2008. "Inter-Island Economic Linkages and Connections in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 56, pages 297-327, December.
    • Handle: RePEc:lpe:efijnl:200815
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    Citations

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    Cited by:

    1. Ernst, Christoph. & Miller, Steve & Imschoot, Marc van., 2015. "The employment dimension of infrastructure investments a guide for employment impact assessment," ILO Working Papers 995164762702676, International Labour Organization.
    2. Irwan Gani & Auliansyah Auliansyah & Emmilya Umma Aziza Gaffar & Muliati Muliati & Yesi Aprianti & Revy Fadly Robby Rachmadi & Nadia Indri Agustina, 2022. "Makassar Strait Area Development in Indonesia Based on the Marine Economy Sector," Economies, MDPI, vol. 10(8), pages 1-18, August.
    3. Ditya Agung Nurdianto, 2016. "Economic Impacts of a Carbon Tax in an Integrated ASEAN," EEPSEA Special and Technical Paper tp201604t5, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2016.

    More about this item

    Keywords

    Development Economics; Regional Economics; Input-output;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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