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Seaport Status, Access, and Regional Development in Indonesia

Muhammad Yudhistira and Yusuf Sofiyandi ()
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Yusuf Sofiyandi: Institute for Economic and Social Research (LPEM), School of Economics and Business, University of Indonesia

No 201601, Working Papers in Economics and Business from Faculty of Economics and Business, University of Indonesia

Abstract: As the biggest archipelago nation, Indonesia considers port infrastructure one of the most important infrastructures in bolstering the regional economic development. In this paper, we study the impacts of access to the existing port infrastructure on regional development, i.e. income per capita, productivity, and poverty at district level in Indonesia. While other similar studies use the size of seaport, we argue that the access may be much more important. Additionally, using access variable accommodates spillover effect of the seaport for landlocked district. We define access to the nearest port as the shortest distance of the respective district to the nearest port. Our estimation results show that proximity to the main ports provides positive effect on GDP per capita, labor productivity, poverty rate, and poverty rate. We also find the importance of ports may vary between Java and non-Java regions.Length: 14 pages

Keywords: seaport status; distance; regional economic development; seaport access; Indonesia (search for similar items in EconPapers)
Pages: 22 pages
Date: 2016-05, Revised 2016-05
New Economics Papers: this item is included in nep-geo, nep-sea, nep-tre and nep-ure
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