Regional Income Disparities, Distributional Convergence, and Spatial Effects: Evidence from Indonesia

Anang Gunawan, Carlos Mendez-Guerra and Felipe Santos-Marquez

MPRA Paper from University Library of Munich, Germany

Abstract: Using a novel dataset, this paper studies the spatio-temporal dynamics of income per capita across provinces and districts in Indonesia over the 2000-2017 period. First, an exploratory spatial analysis suggests that spatial autocorrelation is only significant at the district level and it appears to be robust from 2013 to 2017. Thus, at the district level, we proceed to use a spatial filtering model for decomposing income into a spatially independent component and a spatial residual. Next, through the lens of a distributional convergence framework, we find that the non-filtered income is characterized by a lack of regional mobility. In contrast, the spatially independent component shows a pattern of polarization. We conclude arguing that neighbor effects have played a significant role in reducing regional polarization in Indonesia.

Keywords: Convergence; Getis filter; Nonparametric distribution; Indonesia (search for similar items in EconPapers)
JEL-codes: R10 R11 R15 (search for similar items in EconPapers)
Date: 2019-11-24
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 (4)

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Related works:
Working Paper: Regional Income Disparities, Distributional Convergence, and Spatial Effects: Evidence from Indonesia (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:97090

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