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Regional Efficiency Dispersion, Convergence, and Efficiency Clusters: Evidence from the Provinces of Indonesia 1990-2010

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  • Mendez, Carlos

Abstract

This paper studies efficiency convergence across provinces in Indonesia over the 1990-2010 period. Through the lens of both classical and distributional convergence frameworks, the dispersion dynamics of pure technical efficiency and scale efficiency are contrasted. The results suggest that—on average—there is regional convergence in both measures of efficiency. However, results from the distributional framework indicate the existence of two separate convergence clusters within the pure technical efficiency distribution. Moreover, since scale efficiency is characterized by only one convergence cluster, the two clusters of pure technical efficiency appear to be driving the overall efficiency dynamics of Indonesia.

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  • Mendez, Carlos, 2019. "Regional Efficiency Dispersion, Convergence, and Efficiency Clusters: Evidence from the Provinces of Indonesia 1990-2010," MPRA Paper 95972, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95972
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    1. Mendez-Guerra, Carlos & Kataoka, Mitsuhiko, 2020. "Disparities in Regional Productivity, Capital Accumulation, and Efficiency across Indonesia: A Convergence Clubs Approach," MPRA Paper 99322, University Library of Munich, Germany.

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    More about this item

    Keywords

    Efficiency; Convergence; Distribution-based clustering; Nonparametric distribution; Indonesia;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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