Spatial Dimensions of Expenditure Inequality in a Decentralizing Indonesia
Akita, Takahiro; Miyata, Sachiko | April 2017
Abstract
This study analyzes spatial dimensions of inequality under decentralization in Indonesia from 1996–2010 using the hierarchical decomposition method. It uses household expenditures rather than regional accounts and tries to investigate the contributions of spatial inequalities to overall expenditure inequality. We find that urban–rural disparity constitutes 15%–25% of overall expenditure inequality. A large difference exists between urban and rural areas in the magnitude of inequality among districts. After controlling for the urban–rural difference, inequality among districts accounts for 15%–25% of overall inequality. While disparity between five major island regions is almost negligible, inequalities between districts within provinces appear to have played an increasingly important role in both urban and rural areas. Given unequal geographic distributions of resource endowments, public infrastructure, and economic activities, some spatial inequalities are inevitable. Nevertheless, sustained efforts are necessary to reduce spatial inequalities to facilitate national unity, cohesion, and stability. The government needs to accelerate infrastructure development.
Citation
Akita, Takahiro; Miyata, Sachiko. 2017. Spatial Dimensions of Expenditure Inequality in a Decentralizing Indonesia. © Asian Development Bank Institute. http://hdl.handle.net/11540/7296.Keywords
Income Distribution
Demographic Indicators
Social Justice
Price stabilization
Food prices
Price policy
Poverty Analysis
Participatory Poverty Assessment
Poverty Reduction Strategy
Extreme Poverty
Economic development
Growth And Poverty
Social change
Social accounting
Inequality of income
Economic growth
Qualilty of Life
Open price system
Price fixing
Price regulation
Consumer price indexes
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