Endowments, Location or Luck? Evaluating the Determinants of Sub-National Growth in Decentralized Indonesia
Indonesia's "big bang" decentralization in 2001 shifted much of the responsibility for local economic development from central government to district and city governments, which today number more than 450. But the performance of the...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/11/9993318/endowments-location-or-luck-evaluating-determinants-sub-national-growth-decentralized-indonesia http://hdl.handle.net/10986/6906 |
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okr-10986-69062021-04-23T14:02:32Z Endowments, Location or Luck? Evaluating the Determinants of Sub-National Growth in Decentralized Indonesia McCulloch, Neil Sjahrir, Bambang Suharnoko AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE ANNUAL GROWTH AVERAGE GROWTH AVERAGE GROWTH RATE BASE YEAR DATA ISSUES DECENTRALIZATION DECOMPOSABLE INEQUALITY MEASURES DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DETERMINANTS OF GROWTH DETERMINING GROWTH DEVELOPING COUNTRIES DEVELOPMENT REPORT DIFFERENTIAL IMPACT DISTRIBUTIVE POLITICS ECONOMETRIC ANALYSIS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC CONCENTRATION ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC OPPORTUNITIES ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC PROGRAMS ECONOMIC STRUCTURE ECONOMIC STUDIES ECONOMICS EMPIRICAL ANALYSIS ERROR TERM ESTIMATION RESULTS EXPLANATORY VARIABLES FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL SECTOR FIXED EFFECTS FOREIGN INVESTMENT GDP GDP PER CAPITA GEOGRAPHIC CONCENTRATION GEOGRAPHICAL DETERMINANTS GINI COEFFICIENT GOVERNMENT EXPENDITURE GROWTH ACCELERATIONS GROWTH DETERMINANTS GROWTH IMPACT GROWTH MODEL GROWTH PERFORMANCE GROWTH PERIOD GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH REGRESSIONS GROWTH THEORY GROWTH TRAGEDY HETEROSKEDASTICITY HIGH GROWTH HUMAN CAPITAL INCOME CONVERGENCE INCOME INEQUALITY INCREASING INEQUALITY INDUSTRIALIZATION INEQUALITY MEASURES LABOR FORCE LANDLOCKED COUNTRIES LONG RUN LONG-RUN GROWTH MEAN GROWTH MEASUREMENT ERROR NATURAL RESOURCES NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH THEORY PANEL REGRESSIONS PER CAPITA CONSUMPTION PER CAPITA EXPENDITURE PER CAPITA GROWTH POLICY RESEARCH POLICY VARIABLES POPULATION DATA POPULATION SHARE POSITIVE EFFECT POSITIVE RELATIONSHIP POVERTY RATES POVERTY REDUCTION REAL GDP REAL INCOME REGIONAL GROWTH REGRESSION RESULTS RELATIVE INCOME RESOURCE ENDOWMENTS SECONDARY SCHOOLING SECTORAL COMPOSITION SIGNIFICANT EFFECT SOCIOECONOMIC INDICATORS SPATIAL ECONOMICS STANDARD DEVIATION STRUCTURAL BREAK TRANSACTION COSTS UNIT OF CAPITAL WATER SUPPLY Indonesia's "big bang" decentralization in 2001 shifted much of the responsibility for local economic development from central government to district and city governments, which today number more than 450. But the performance of these districts has varied widely. This paper attempts to understand the determinants of sub-national (district/city) growth in Indonesia and map how these determinants have changed since before the 1997/98 economic crisis. The authors exploit a rich dataset that includes a wide range of district-level characteristics, including education, population, cultural, economic, and infrastructure variables, as well as a set of variables relating to distance, to try to explain growth. The analysis finds that, after accounting for differences in other variables, poorer districts tend to grow faster than better off districts. Similarly, there is evidence of spatial divergence, in the sense that districts tend to grow faster if their neighbors are growing quickly. However, the quality of the existing district-level data makes it difficult to identify whether endowments or factors related to distance are systematically associated with growth. 2012-06-01T18:55:05Z 2012-06-01T18:55:05Z 2008-11 http://documents.worldbank.org/curated/en/2008/11/9993318/endowments-location-or-luck-evaluating-determinants-sub-national-growth-decentralized-indonesia http://hdl.handle.net/10986/6906 English Policy Research Working Paper; No. 4769 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Indonesia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE ANNUAL GROWTH AVERAGE GROWTH AVERAGE GROWTH RATE BASE YEAR DATA ISSUES DECENTRALIZATION DECOMPOSABLE INEQUALITY MEASURES DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DETERMINANTS OF GROWTH DETERMINING GROWTH DEVELOPING COUNTRIES DEVELOPMENT REPORT DIFFERENTIAL IMPACT DISTRIBUTIVE POLITICS ECONOMETRIC ANALYSIS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC CONCENTRATION ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC OPPORTUNITIES ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC PROGRAMS ECONOMIC STRUCTURE ECONOMIC STUDIES ECONOMICS EMPIRICAL ANALYSIS ERROR TERM ESTIMATION RESULTS EXPLANATORY VARIABLES FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL SECTOR FIXED EFFECTS FOREIGN INVESTMENT GDP GDP PER CAPITA GEOGRAPHIC CONCENTRATION GEOGRAPHICAL DETERMINANTS GINI COEFFICIENT GOVERNMENT EXPENDITURE GROWTH ACCELERATIONS GROWTH DETERMINANTS GROWTH IMPACT GROWTH MODEL GROWTH PERFORMANCE GROWTH PERIOD GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH REGRESSIONS GROWTH THEORY GROWTH TRAGEDY HETEROSKEDASTICITY HIGH GROWTH HUMAN CAPITAL INCOME CONVERGENCE INCOME INEQUALITY INCREASING INEQUALITY INDUSTRIALIZATION INEQUALITY MEASURES LABOR FORCE LANDLOCKED COUNTRIES LONG RUN LONG-RUN GROWTH MEAN GROWTH MEASUREMENT ERROR NATURAL RESOURCES NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH THEORY PANEL REGRESSIONS PER CAPITA CONSUMPTION PER CAPITA EXPENDITURE PER CAPITA GROWTH POLICY RESEARCH POLICY VARIABLES POPULATION DATA POPULATION SHARE POSITIVE EFFECT POSITIVE RELATIONSHIP POVERTY RATES POVERTY REDUCTION REAL GDP REAL INCOME REGIONAL GROWTH REGRESSION RESULTS RELATIVE INCOME RESOURCE ENDOWMENTS SECONDARY SCHOOLING SECTORAL COMPOSITION SIGNIFICANT EFFECT SOCIOECONOMIC INDICATORS SPATIAL ECONOMICS STANDARD DEVIATION STRUCTURAL BREAK TRANSACTION COSTS UNIT OF CAPITAL WATER SUPPLY |
| spellingShingle |
AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE ANNUAL GROWTH AVERAGE GROWTH AVERAGE GROWTH RATE BASE YEAR DATA ISSUES DECENTRALIZATION DECOMPOSABLE INEQUALITY MEASURES DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DETERMINANTS OF GROWTH DETERMINING GROWTH DEVELOPING COUNTRIES DEVELOPMENT REPORT DIFFERENTIAL IMPACT DISTRIBUTIVE POLITICS ECONOMETRIC ANALYSIS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC CONCENTRATION ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC OPPORTUNITIES ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC PROGRAMS ECONOMIC STRUCTURE ECONOMIC STUDIES ECONOMICS EMPIRICAL ANALYSIS ERROR TERM ESTIMATION RESULTS EXPLANATORY VARIABLES FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL SECTOR FIXED EFFECTS FOREIGN INVESTMENT GDP GDP PER CAPITA GEOGRAPHIC CONCENTRATION GEOGRAPHICAL DETERMINANTS GINI COEFFICIENT GOVERNMENT EXPENDITURE GROWTH ACCELERATIONS GROWTH DETERMINANTS GROWTH IMPACT GROWTH MODEL GROWTH PERFORMANCE GROWTH PERIOD GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH REGRESSIONS GROWTH THEORY GROWTH TRAGEDY HETEROSKEDASTICITY HIGH GROWTH HUMAN CAPITAL INCOME CONVERGENCE INCOME INEQUALITY INCREASING INEQUALITY INDUSTRIALIZATION INEQUALITY MEASURES LABOR FORCE LANDLOCKED COUNTRIES LONG RUN LONG-RUN GROWTH MEAN GROWTH MEASUREMENT ERROR NATURAL RESOURCES NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH THEORY PANEL REGRESSIONS PER CAPITA CONSUMPTION PER CAPITA EXPENDITURE PER CAPITA GROWTH POLICY RESEARCH POLICY VARIABLES POPULATION DATA POPULATION SHARE POSITIVE EFFECT POSITIVE RELATIONSHIP POVERTY RATES POVERTY REDUCTION REAL GDP REAL INCOME REGIONAL GROWTH REGRESSION RESULTS RELATIVE INCOME RESOURCE ENDOWMENTS SECONDARY SCHOOLING SECTORAL COMPOSITION SIGNIFICANT EFFECT SOCIOECONOMIC INDICATORS SPATIAL ECONOMICS STANDARD DEVIATION STRUCTURAL BREAK TRANSACTION COSTS UNIT OF CAPITAL WATER SUPPLY McCulloch, Neil Sjahrir, Bambang Suharnoko Endowments, Location or Luck? Evaluating the Determinants of Sub-National Growth in Decentralized Indonesia |
| geographic_facet |
East Asia and Pacific Indonesia |
| relation |
Policy Research Working Paper; No. 4769 |
| description |
Indonesia's "big bang"
decentralization in 2001 shifted much of the responsibility
for local economic development from central government to
district and city governments, which today number more than
450. But the performance of these districts has varied
widely. This paper attempts to understand the determinants
of sub-national (district/city) growth in Indonesia and map
how these determinants have changed since before the 1997/98
economic crisis. The authors exploit a rich dataset that
includes a wide range of district-level characteristics,
including education, population, cultural, economic, and
infrastructure variables, as well as a set of variables
relating to distance, to try to explain growth. The
analysis finds that, after accounting for differences in
other variables, poorer districts tend to grow faster than
better off districts. Similarly, there is evidence of
spatial divergence, in the sense that districts tend to grow
faster if their neighbors are growing quickly. However, the
quality of the existing district-level data makes it
difficult to identify whether endowments or factors related
to distance are systematically associated with growth. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
McCulloch, Neil Sjahrir, Bambang Suharnoko |
| author_facet |
McCulloch, Neil Sjahrir, Bambang Suharnoko |
| author_sort |
McCulloch, Neil |
| title |
Endowments, Location or Luck? Evaluating the Determinants of Sub-National Growth in Decentralized Indonesia |
| title_short |
Endowments, Location or Luck? Evaluating the Determinants of Sub-National Growth in Decentralized Indonesia |
| title_full |
Endowments, Location or Luck? Evaluating the Determinants of Sub-National Growth in Decentralized Indonesia |
| title_fullStr |
Endowments, Location or Luck? Evaluating the Determinants of Sub-National Growth in Decentralized Indonesia |
| title_full_unstemmed |
Endowments, Location or Luck? Evaluating the Determinants of Sub-National Growth in Decentralized Indonesia |
| title_sort |
endowments, location or luck? evaluating the determinants of sub-national growth in decentralized indonesia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/11/9993318/endowments-location-or-luck-evaluating-determinants-sub-national-growth-decentralized-indonesia http://hdl.handle.net/10986/6906 |
| _version_ |
1764401301353922560 |