Aloysius Gunadi, Brata (2008): Creating New Regions, Improving Regional Welfare Equality?
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In concurrent with reformation and decentralization, number of sub-national administrative in Indonesia increase significantly. Existing regions has been splitting to create new regions. As the result, number of municipalities and districts in Indonesia in recent years are more than 450. The creation of new regions has been expected will increase citizens’ welfare in the regions and reduce regional inequality. However, indicative evidences shows negative impacts of this reform such as increase of inefficient administration cost of government, decrease capacity to deliver public services and increase potential for inter-group conflict. All of these indicative evidences will affect the welfare of citizens as seen on the human development indicators. Based on this background, the aim of this article is to analyze the relation of creation of new regions with the evolution of regional welfare inequality. The study employed human development index (HDI) at sub-national level (kota/kabupaten) as the indicator of welfare. The evolution of regional inequality of the HDI is analyzed by comparing coefficient of variation in the HDI from 1996 to 2005. This paper also estimated a preliminary empirical model to assess the impact of pemekaran on the within province inequality. The policy implication of this finding is that pemekaran should be controlled.
|Item Type:||MPRA Paper|
|Original Title:||Creating New Regions, Improving Regional Welfare Equality?|
|Keywords:||new region, ‘pemekaran’, human development index, inequality|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy
H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H75 - State and Local Government: Health; Education; Welfare; Public Pensions
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
|Depositing User:||Aloysius Gunadi Brata|
|Date Deposited:||07. Jan 2009 05:24|
|Last Modified:||15. Feb 2013 06:11|
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