Prof Muhammad Firdaus

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The Dynamics of Regional Disparity in Java Island After Fiscal Decentralization

 
International Journal of Economics and Management
Abstract
Income disparity does not only exist beween Java Island and out of
Java. Some figures indicate that the disparity among regions in Java
Island is significant. This study aimed to analyze the dynamics of
disparity in economic development among regions in Java Island
after the decentralization policy. The study employs the data of 105
districts/cities from 2001 up to 2009. Both dynamic and static panel
data are employed to satisfy the objectives of the study. The results
show that the disparity of regional income among districts/cities
is still high in Java Island, while the disparity is dominated by the
income inequality among the cities. The model shows that regional
GDP convergence does not matter in Java Island, however household
income convergence is very high. The significant determinants of
disparity among regions in Java Island are share of manufacture, level
of labor education, health infrastructure, power and water supply
.
Keywords: Income disparity, dynamic panel data, Williamson coefficient, Java Island

Full PDF below

http://econ.upm.edu.my/ijem/vol6no1/bab09.pdf

 

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