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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Main Authors: McCulloch, Neil, Sjahrir, Bambang Suharnoko
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
GDP
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
id okr-10986-6906
recordtype oai_dc
spelling 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