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    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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    Citable URI
    http://hdl.handle.net/11540/7296
    Metadata
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    Author
    Akita, Takahiro
    Miyata, Sachiko
    Theme
    Poverty
    Economics
    Labor Migration
     
    Copyright 2016-2020 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2020 Asian Development Bank Institute, except as explicitly marked otherwise