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A Study on Indonesia Regions Disparity: Post Decentralization

Author

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  • Aritenang, Adiwan F.

Abstract

Since its independence, Indonesia has developed fluctuated and uneven. The financial crisis and political changes has lead to decentralization in 1999, which has entitled local governments (province and regency/municipality) to develop its region autonomously. Surprisingly, it was concern that the decentralization will increase the disparities, rather than decrease it. This research uses Indonesia disparities in the province level. Using regression analysis we will overview Indonesian provinces disparities and poverty rate to overview the economic growth after decentralization. Overall, this research aims to shows the economic performance of Indonesia regions and highlight determinant factors that impacts poverty rate. This research lays in the Poverty reduction theory and ideology within a context of globalization sub-theme because it studies on the approach that Indonesia government took to solve disparities and encourages poor regions to advance its development.

Suggested Citation

  • Aritenang, Adiwan F., 2008. "A Study on Indonesia Regions Disparity: Post Decentralization," MPRA Paper 25245, University Library of Munich, Germany, revised Aug 2010.
    • Handle: RePEc:pra:mprapa:25245
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    File URL: https://mpra.ub.uni-muenchen.de/25245/1/MPRA_paper_25245.pdf
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    References listed on IDEAS

    as
    1. Bambang Brodjonegoro & Jorge Martinez-Vazquez, 2004. "An Analysis of Indonesia's Transfer System: Recent Performance and Future Prospects," Chapters, in: James Alm & Jorge Martinez-Vazquez & Sri Mulyani Indrawati (ed.), Reforming Intergovernmental Fiscal Relations and the Rebuilding of Indonesia, chapter 8, Edward Elgar Publishing.
    2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    3. Ron Martin & Peter Sunley, 1998. "Slow Convergence? The New Endogenous Growth Theory and Regional Development," Economic Geography, Taylor & Francis Journals, vol. 74(3), pages 201-227, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Irwan Trinugroho & Agusman Agusman & Mochammad Doddy Ariefianto & Darsono Darsono & Amine Tarazi, 2015. "Determinants of cross regional disparity in financial deepening: Evidence from Indonesian provinces," Economics Bulletin, AccessEcon, vol. 35(2), pages 896-910.

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    More about this item

    Keywords

    decentralization; disparity; economic growth;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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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