Spatial Concentration of the Informal Small and Cottage Industry in Indonesia

Aloysius Brata

MPRA Paper from University Library of Munich, Germany

Abstract: This paper discusses the spatial concentration of the small and cottage industry without legal entity in Indonesia. The study period is 1998-2004 or a period after economic crisis which commonly known as the ‘era reformasi’ (reformation era). By employing the Herfindahl index, this study found an increase in the spatial concentration of the informal small and cottage industry during this period. It argues that reformation tend to increase the spatial concentration of the informal small and cottage industry. Beside the economic crisis that have suffered urban and Java areas, other possible explanation on the connection between trend of the concentration and the reformation is what commonly known as the cost of formality.

Keywords: spatial concentration; small and cottage industry; reformation; Indonesia (search for similar items in EconPapers)
JEL-codes: O17 O18 R11 (search for similar items in EconPapers)
Date: 2007, Revised 2008
New Economics Papers: this item is included in nep-geo, nep-sea and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:12622

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