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The Effects of Agro-clusters on Rural Poverty: A Spatial Perspective for West Java

Author

Listed:
  • Wardhana, Dadan
  • Ihle, Rico
  • Heijman, Wim

Abstract

Neighboring economies are likely to influence one another. The concentration of farming activities referred to as an agro-cluster generates opportunities for income and employment in a given region and its surrounding area. We analyze the link between poverty rates and agro-clusters by accounting for spatial perspective. To quantify agro-clusters, we employ one input and one output oriented measures. The analysis applies six spatial econometric specifications. We focus on the 545 sub-districts of West Java, where about 10% of the population live in poverty. The concentration of agricultural employment significantly reduces poverty in a sub-district as well as in neighboring regions. Specialization in agricultural output is also associated with lower poverty rates. These findings imply that policy interventions may be applied in a spatially selective manner because they will generate spillover effects on poverty reduction also in surrounding areas.

Suggested Citation

  • Wardhana, Dadan & Ihle, Rico & Heijman, Wim, 2017. "The Effects of Agro-clusters on Rural Poverty: A Spatial Perspective for West Java," 2017 ASAE 9th International Conference, January 11-13, Bangkok, Thailand 284884, Asian Society of Agricultural Economists (ASAE).
    • Handle: RePEc:ags:asae17:284884
    DOI: 10.22004/ag.econ.284884
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    Cited by:

    1. Ragdad Cani Miranti, 2021. "Is regional poverty converging across Indonesian districts? A distribution dynamics and spatial econometric approach," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 851-883, October.
    2. Mangku Purnomo & Fenna Otten & Heiko Faust, 2018. "Indonesian Traditional Market Flexibility Amidst State Promoted Market Competition," Social Sciences, MDPI, vol. 7(11), pages 1-17, November.
    3. Renato Quiliche & Rafael Rentería-Ramos & Irineu de Brito Junior & Ana Luna & Mario Chong, 2021. "Using Spatial Patterns of COVID-19 to Build a Framework for Economic Reactivation," Sustainability, MDPI, vol. 13(18), pages 1-23, September.

    More about this item

    Keywords

    Agricultural and Food Policy;

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