Brata, Aloysius Gunadi (2009): Does Geographic Factors Determine Local Economic Development?
Download (225kB) | Preview
The purpose of this paper is to analyze the influence of geographic characteristics on the local economic development. There are two important reasons related to that objective. First, study on this topic in the case of Indonesia is rather limited, especially in the field of local economic development of the country. Second, geographically, Indonesia is a heterogeneous country and its consequence is development policy should also consider the geographic characteristics of the country. The study estimates impact of some geographic variables on the Gross Domestic Regional Product (GDRP) per capita and GDRP density as indicators of local economic development with data of the districts in the Central Java province uses regression models. Geographic variables used in the model are distance to economic centres, location of districts, and a measure of clustering of economic activity. Other socio-economic variable is also used in the model, such as literacy rate which is one of the components of human development index (HDI). This study found that in general geography influences local economic performance; however, geography is not the only determinant of economic performance. It also suggests that study on geographic inequality not only apply “per capita approach” but also “density approach” to get a more comprehensive picture of the impact of geography on economic development.
|Item Type:||MPRA Paper|
|Original Title:||Does Geographic Factors Determine Local Economic Development?|
|English Title:||Does Geographic Factors Determine Local Economic Development?|
|Keywords:||geographic, local economic development, Indonesia|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
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:||19. Jun 2009 05:43|
|Last Modified:||07. Jan 2014 21:10|
Amiti, M. and L. Cameron. 2004. Economic Geography and Wages: The Case of Indonesia. IMF Working Paper, WP/04/79. (Available at http://www.imf.org/external/pubs/ft/wp/2004/wp0479.pdf)
Bloom, E. D. and J. D. Sachs. 1998. Geography, Demography, and Economic Growth in Africa. October 1998. (Available at http://www.cid.harvard.edu/archive/malaria/docs/brookafr.pdf)
Blum, R. and A.D. Cayeros. 2002. Rentier States and Geography in Mexico’s Development. IADB Research Department, Washington. (Available at http://www.iadb.org/res/publications/pubfiles/pubR-443.pdf)
Gallup, J. L., J. D. Sachs, A. Mellinger. 1999. Geography and Economic Development. CID Working Paper No. 1 March 1999. (Available at http://www.cid.harvard.edu/cidwp/pdf/001.pdf)
Grimm, M. and S. Klasen. 2008. Geography vs. Institution at the Village Level. Institute for the Study of Labor, IZA Discussion Paper No. 3391. (Available at http://ftp.iza.org/dp3391.pdf)
Gujarati, D. N. and D.C. Porter. 2009, Basic Econometrics (fifth edition), NY, McGraw-Hill, Inc.
Hall, R. E. and C. I. Jones. 1999. ”Why do Some Countries Produce So Much More Output per Worker than Others?.” The Quarterly Journal of Economics February 1999: 83-116.
Henderson, J. V., Z. Shalizi, A. J. Venables. 2001. “Geography and Development.” Journal of Economic Geography 1 (2001): 81-105.
Hernández-Catá, E. 2000. Raising Growth and Investment in Sub-Saharan Africa: What Can Be Done?. IMF Policy Discussion Paper, PDP/00/4. (Available at… www.imf.org/external/pubs/ft/pdp/2000/pdp04.pdf)
Hill, H., B. Resosudarmo, and Y. Vidyattama. 2009. “Economic geography of Indonesia: location, connectivity, and resources”. In Yukon Huang and Alessandro Magnoli Bocchi (eds.), Reshaping Economic Geography in East Asia. Washington: IBRD/WB, pp. 115-134.
Lall, S. V. and S. Chakravorty. 2006. “Industrial location and spatial inequality: Theory and evidence from India.” in Kanbur Kanbur, Ravi, A. J. Venebles, Guanghua Wan (eds.), Spatial Disparities in Human Development: Perspectives from Asia, Tokyo-New York-Paris: United Nations University Press., Pp. 158-187.
Mellinger, A. D., J. D. Sachs, J. L. Gallup. 1999. Climate, Water Navigability and Economic Development. CID Working Paper No. 24 September 1999. (Available at http://www.cid.harvard.edu/cidwp/pdf/024.pdf)
Nordhaus, W. D. 2006. “Geography and macroeconomics: New data and new findings.”, PNAS March 7, 2006; 103(10): 3510-3517.
Redding, S. and A. J. Venables. 2004. “Economic geography and international inequality”. Journal of International Economics 62 (2004): 53-82.
Shumming Bao, Gene Hsin Chang, J. D. Sachs, and Wing Thye Woo. 2002. “Geographic factors and China’s regional development under market reforms, 1978-1998.” China Economic Review 13 (1): 89-111.
Subhan, M. 2009. “Susur Selatan Jawa: Kawasan Selatan, Wajah Ketakberdayaan.” Kompas, 26 April 2009.
World Bank. 2009. World Development Report 2009: Reshaping Economic Geography. Washington: IBRD-World Bank.