Suchergebnisse

Chapter 1. Introduction -- Chapter 2.Measurement of Regional Inequality -- Chapter 3.Analysis of Regional Inequality -- Chapter 4.Economic Tertialization, Output Deindustrialization and Income Inequality in Indonesia: A Bi-dimensional Inequality Decomposition Analysis -- Chapter 5.Structural Changes and Regional Income Inequality in the Indonesian Manufacturing Industry: An Inequality Decomposition Analysis -- Chapter 6.The Impact of the 1997 Economic Crisis on Income Inequality in Indonesia: A Two-stage Nested Theil Decomposition Analysis -- Chapter 7. Inter-provincial Inequality in Labor Productivity and Efficiency in Indonesia: A Factor Decomposition Analysis.

This book addresses three main issues in regional income inequality and development: meaning of regional inequality, measurement of regional inequality and the relationship between national economic development and regional income inequality. It provides analytical methods useful in exploring the determinants of regional inequality in income and productivity. Some software commands in Stata (statistical software package) available for the measurement and analysis of income inequality are also introduced. Some researchers have argued that spatial concentration of population in and around major cities and the concurrent increase in regional inequality do not hinder national economic development, and may stimulate it. Nevertheless, many national governments seek to promote balanced regional economic development and reduce regional income inequality, because unbalanced development and higher levels of regional inequality may cause political or ethnic conflicts between different regions of the country. As the applications of the analytical methods introduced in the first part of the book, the second part presents four independent empirical studies on regional inequality and development in Indonesia. They offer very interesting case studies for the formulation of policies and programs to reduce regional inequalities, because as the worlds largest archipelagic country with more than 13 thousand islands and 300 ethnic groups, Indonesia is spatially diverse in terms of its ecology, natural resource endowments, economy, ethnicity and culture. This book can be used as a textbook for undergraduate and graduate students who are interested in national economic development and regional income inequality. It is also beneficial for practitioners and policy makers who are in charge of the formulation, implementation and evaluation of development policies and programs.

This study analyzes spatial dimensions of inequality under decentralization in Indonesia from 1996-2010 using the hierarchical decomposition method. It uses household expenditures rather than regional accounts and tries to investigate the contributions of spatial inequalities to overall expenditure inequality. We find that urban-rural disparity constitutes 15%-25% of overall expenditure inequality. A large difference exists between urban and rural areas in the magnitude of inequality among districts. After controlling for the urban-rural difference, inequality among districts accounts for 15%-25% of overall inequality. While disparity between five major island regions is almost negligible, inequalities between districts within provinces appear to have played an increasingly important role in both urban and rural areas. Given unequal geographic distributions of resource endowments, public infrastructure, and economic activities, some spatial inequalities are inevitable. Nevertheless, sustained efforts are necessary to reduce spatial inequalities to facilitate national unity, cohesion, and stability. The government needs to accelerate infrastructure development.

This paper considers urban-rural location and education as the main causes of expenditure inequality and attempts to examine inequality changes associated with urbanization and educational expansion in Indonesia from 1996 to 2002, using Indonesian monthly household consumption expenditure data. It introduces a hierarchical framework of inequality decomposition by population subgroups, which enables researchers to analyze inequality resulting from differences in educational attainment as well as inequality within each educational group, after the effects on inequality of urban–rural differences in the composition of educational attainments are removed. It finds that the urban sector's higher educational group contributes significantly to overall inequality. Inequality within the group increased significantly once Indonesia recovered from the financial crisis of 1998. This, together with educational expansion in urban areas, led to a conspicuous rise in urban inequality. Overall expenditure inequality has increased markedly, due not only to the rise in urban inequality but also a widening urban-rural disparity, accompanied by a population shift from the rural to the urban sector. Since more people will obtain higher education as the economy continues to develop, and more jobs requiring specialized skills become available in urban areas, urban inequality is likely to remain high. In order to mitigate urban inequality and thus overall inequality, the government needs to introduce policies that could reduce inequality among households whose heads have a tertiary education. -- from Authors' Abstract ; Non-PR ; IFPRI1 ; MTID

In his seminal work on national development and regional inequality, Williamson (1965) predicts that regional income inequality will pass through three distinct phases as a nation moves through the early development stages to maturity. In the early stages of economic development, regional income inequality will increase, largely because of the disequilibrating effects of factor mobility. This will be followed by a period of stability, characterized by a relatively high level of inequality between regions. Finally, a lessening of regional inequality will set in as the national economy matures and equilibrating forces take effect. This overall process, if plotted against national economic development, will result in a bell-shaped or inverted U-shapes curve. The early stages of development are also associated with rapid urbanization, though with a shift toward population dispersion as the economy matures. Other stylized facts in the process of development include industrialization, demographic transition, and changing inequality of income among population subgroups (Alonso, 1980). The concentration of population in and around large cities is usually accompanied by an increase in regional income inequality. Some researchers have argued that this population concentration and concurrent increase in regional inequality does not impede economic development, and may in fact favor it. Nonetheless, many national governments have introduced policies of balanced regional development. The main objective of this paper is to measure regional income inequality in the post-war Japan using Williamson's weighted coefficient of variation. Based on prefectural population and GDP data, it investigates longer-term trends in regional income inequality. A sectoral decomposition analysis is also performed to examine the extent to which each industrial sector contributes to the overall weighted coefficient of variation. We hope to gain a deeper understanding of the relationship between national development, industrialization, and regional inequalities in the post-war Japan.

AbstractBased on the Household Income and Expenditure Surveys in 2006 and 2012, this study analyses the roles of education in expenditure inequality in Myanmar using three inequality decomposition methods. Expenditure inequality was very high among ASEAN countries and much of the inequality was due to inequalities within urban and rural areas. Expansion of secondary education is important in urban areas, while primary education needs to be strengthened in rural areas to reduce expenditure disparity between the urban and rural sectors. Since expenditure inequalities between educational groups were small in both urban and rural areas, expenditure inequalities within educational groups need to be decreased to reduce overall expenditure inequality. The government needs to strengthen income‐redistribution policies and social security programmes, promote the formal sector, and enforce the minimum wage regulation to reduce expenditure inequality. Since older age groups tend to have larger expenditure inequalities in urban areas, the government needs to strengthen social safety net programmes and raise pension coverage in the urban private sector. Since a very high expenditure inequality existed among younger households in the urban tertiary educational group, the government may need to introduce policies that could promote linkages between industry and academia to remove a mismatch between the qualifications of university and college graduates and the needs of employers.

AbstractThis study analyses the level and trend of fiscal disparity among Indonesian districts. It also explores the determinants of fiscal disparity using two inequality decomposition methods: decomposition of the Gini coefficient and the coefficient of variation by revenue sources and decomposition of the Theil index by regions. Disparity in shared revenue has been large due to the very uneven spatial distributions of natural resources and tax bases. It is unambiguously an inequality‐increasing fiscal transfer in Indonesia. A general allocation grant has served to equalize fiscal revenue, but overall fiscal disparity is still high. To reduce the disparity, it may be necessary to modify the general allocation formula since it appears to be defective. This study proposes a new allocation formula. Though the reduction in fiscal disparity is not substantial in the short run, the new formula would provide an incentive for resource‐poorer district governments to raise their own source revenue. This could create a virtuous cycle if the additional own source revenue is used for local development, particularly education and infrastructure. Another option to reduce fiscal disparity would be the further expansion of special allocation grant. If the government allocates the special allocation fund effectively across districts in Indonesia, it could make a special allocation grant an inequality‐decreasing fiscal transfer.

In his seminal article on economic growth and income inequality, Kuznets (1955) advanced the hypothesis, that income inequality first increases and then decreases in relation to economic development. The authors explore the factors and forces underlying income inequality in Indonesia. (DÜI-Sen)