Regional Efficiency Dispersion, Convergence, and Efficiency Clusters: Evidence from the Provinces of Indonesia 1990-2010

Abstract

This presentation is about efficiency convergence across provinces in Indonesia over the 1990-2010 period. Through the lens of both classical and distributional convergence frameworks, the dispersion dynamics of pure technical efficiency and scale efficiency are contrasted. The results suggest that—on average—there is regional convergence in both measures of efficiency. However, results from the distributional framework indicate the existence of two separate convergence clusters within the pure technical efficiency distribution. Thus, since scale efficiency is characterized by only one convergence cluster, the two clusters of pure technical efficiency appear to be driving the overall efficiency dynamics of Indonesia.

Carlos Mendez

Associate Professor of Development Economics

My research interests focus on the integration of development economics, spatial data science, and econometrics to understand and inform the process of sustainable development across regions.