Regional Efficiency Dispersion, Convergence, and Efficiency Clusters: Evidence from the Provinces of Indonesia 1990-2010

Carlos Mendez-Guerra

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies efficiency convergence across provinces in Indonesia over the 1990-2010 period. Through the lens of both classical and distributional convergence frameworks, the dispersion dynamics of pure technical efficiency and scale efficiency are contrasted. The results suggest that—on average—there is regional convergence in both measures of efficiency. However, results from the distributional framework indicate the existence of two separate convergence clusters within the pure technical efficiency distribution. Moreover, since scale efficiency is characterized by only one convergence cluster, the two clusters of pure technical efficiency appear to be driving the overall efficiency dynamics of Indonesia.

Keywords: Efficiency; Convergence; Distribution-based clustering; Nonparametric distribution; Indonesia (search for similar items in EconPapers)
JEL-codes: R11 R12 R58 (search for similar items in EconPapers)
Date: 2019-09-11
New Economics Papers: this item is included in nep-eff, nep-geo, nep-sea and nep-ure
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Citations: View citations in EconPapers (1)

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