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Spatial Dimensions of Expenditure Inequality in a Decentralizing Indonesia

dc.contributor.authorTakahiro Akita
dc.contributor.authorSachiko Miyata
dc.description.abstractThis 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.
dc.publisherAsian Development Bank Institute
dc.titleSpatial Dimensions of Expenditure Inequality in a Decentralizing Indonesia
dc.typeWorking Papers
dc.subject.expertIncome Distribution
dc.subject.expertDemographic Indicators
dc.subject.expertSocial Justice
dc.subject.expertPrice stabilization
dc.subject.expertFood prices
dc.subject.expertPrice policy
dc.subject.adbPoverty Analysis
dc.subject.adbParticipatory Poverty Assessment
dc.subject.adbPoverty Reduction Strategy
dc.subject.adbExtreme Poverty
dc.subject.adbEconomic development
dc.subject.adbGrowth And Poverty
dc.subject.naturalSocial change
dc.subject.naturalSocial accounting
dc.subject.naturalInequality of income
dc.subject.naturalEconomic growth
dc.subject.naturalQualilty of Life
dc.subject.naturalOpen price system
dc.subject.naturalPrice fixing
dc.subject.naturalPrice regulation
dc.subject.naturalConsumer price indexes
dc.title.seriesADBI Working Paper Series
dc.title.volumeNo. 720
dc.contributor.imprintAsian Development Bank Institute
oar.themeLabor Migration
oar.adminregionSoutheast Asia Region
oar.authorAkita, Takahiro
oar.authorMiyata, Sachiko

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    The Asian Development Bank Institute (ADBI) Working Paper series is a continuation of the formerly named Discussion Paper series which began in January 2003. The numbering of the papers continued without interruption or change. ADBI was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

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