Indonesia

Okun's law and spatial regimes in Indonesia: A machine learning approach

Economic growth does not reduce unemployment equally across Indonesia: it helps a lot in some districts and barely at all in others. Because growth in one district also affects jobs in its neighbors, job policies work best when they fit local conditions and are coordinated across nearby regions.

Minimum wage differentials and commuting across districts

Around Jakarta, many people live in one district and work in another, and each district sets its own minimum wage. We find that workers are more likely to commute to a neighboring district when its minimum wage is higher, so wage rules drawn along district borders shape where people travel to work.

Regional unemployment dynamics in Indonesia: Serial persistence, spatial dependence, and common factors

We analyze the space-time dynamics of Indonesia’s provincial unemployment by simultaneously accounting for their serial persistence, spatial dependence, and common factors.

Regional Okun’s law and endogeneity: evidence from the Indonesian districts

This paper investigates the regional Okun’s law across 514 districts of Indonesia over the 2011–2020 period. To handle the endogeneity issue, we apply a two-stage least squares (2SLS) model and use regional temperature as instrument for economic …

Measuring and understanding regional inequality through the lens of the Indonesian experience

This article reviews the book by Akita and Kataoka (Regional inequality and development: Measurement and applications in Indonesia, 2022)

Social and economic convergence across districts in Indonesia: A spatial econometric approach

This paper evaluates social and economic convergence across 514 districts in Indonesia over the 2010-2018 period.

Provincial income convergence clubs in Indonesia: Identification and conditioning factors

This study evaluates the regional convergence hypothesis at the provincial level during the recent deindustrialization period 2001–2017 of Indonesia.

Regional income disparities, distributional convergence, and spatial effects: Evidence from Indonesian regions 2010–2017

Using a novel dataset, we analysis the spatio-temporal dynamics of income per capita across 34 provinces and 514 districts in Indonesia over the 2010–2017 period.

Regional income disparities and convergence clubs in Indonesia: New district-level evidence

By applying a non-linear dynamic factor model, this article tests the club convergence hypothesis using a novel dataset of income at the district level. The results show significant five convergence clubs.

Disparities in Regional Productivity, Capital Accumulation, and Efficiency across Indonesia: A Club Convergence Approach

Except for aggregate efficiency, we reject the hypothesis that all provinces would eventually converge to a common steady-state path in terms of labor productivity, physical capital, and human capital. Low efficiency is still a problem for Indonesia