Aritenang, A;
Son, JW;
(2018)
The effect of decentralization and free trade agreements on regional disparity in a developing economy: the case of Indonesia, 1993–2005.
International Journal of Urban Sciences
, 22
(4)
pp. 546-564.
10.1080/12265934.2018.1425155.
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Abstract
Since 1993, Indonesia has experienced both upward and downward restructuring of state power through the ASEAN Free Trade Agreement (AFTA) and fiscal decentralization, respectively. In this study, we investigate the impact of state restructuring on regional disparity. Indonesia is an interesting case because it is one of the few economies in which the upward and downward restructuring of state power occurred almost simultaneously. Based on a panel data analysis of micro-level firm data for the period 1993–2005, we find evidence of neoclassical convergence. Furthermore, decentralization was found to slow this convergence, while the AFTA had no statistically significant impact during the study period.
| Type: | Article |
|---|---|
| Title: | The effect of decentralization and free trade agreements on regional disparity in a developing economy: the case of Indonesia, 1993–2005 |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1080/12265934.2018.1425155 |
| Publisher version: | https://doi.org/10.1080/12265934.2018.1425155 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Indonesia, decentralization, regional disparity, free trade agreement |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett School of Planning |
| URI: | https://discovery-pp.ucl.ac.uk/id/eprint/10040223 |
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