International University of Japan
  • English English en
  • 日本語 Japanese ja
International University of Japan
  • About IUJ
  • Academic Program
  • Admissions & Aid
  • Research & Library
  • Careers & Alumni
  • On Campus
  • Search
IUJ: Research outputs: Working Paper
Working Paper

No EMS-2020-01
Title Economic Tertiarization and Regional Income Inequality in a Decentralized Indonesia: A Bi-dimensional Inequality Decomposition Analysis
Author Armida Alisjahbana
Takahiro Akita
Year 2020
AbstractText This study attempts to explore the determinants of interprovincial income inequality in Indonesia from 2005 to 2013 by using a bi-dimensional inequality decomposition method. It tries, particularly, to analyze how economic tertiarization and concurrent output deindustrialization have affected interprovincial inequality. The bi-dimensional inequality decomposition method decomposes interprovincial inequality as measured by the squared population-weighted coefficient of variation in two dimensions, namely, by regional groups and industrial sectors. While deindustrialization has lowered the relative importance of manufacturing in determining overall interprovincial inequality, manufacturing activities are still very unevenly distributed among regions and provinces. The government needs to implement policies that are conducive to the balanced development of non-oil and gas manufacturing industries based on regional comparative advantages and disadvantages, where further development of economic infrastructures and human resources, particularly outside Java-Bali, is essential. Meanwhile, economic tertiarization has raised the importance of service activities in determining overall interprovincial inequality, particularly inequality within Java-Bali. The tertiary sector accounts for more than half of total GDP in Java-Bali, and many service activities, such as IC, banking, business services and private services, are concentrated in Jakarta and neighboring districts. Particularly, with the advancement of IC technologies, the IC sector has been expanding rapidly. Together with banking, business services and private services, further development of the IC sector is likely to increase interprovincial inequality in Java-Bali unless policies that could facilitate geographical dispersion of these service activities are implemented.
Revised version published in

About

  • IUJ Education
  • Graduate School of
    International Management
  • Graduate School of
    International Relations
  • Self-Evaluation
  • Access – Campus
  • Access – Tokyo Office
  • Faculty Positions

Career

  • Career Counseling and
    Service
  • Career Workshops
  • On-Campus Recruitment
  • Placement Information

Admission

  • GSIR Admission Schedule
  • GSIM Admission Schedule
  • Materials Request/Download
  • Info Sessions and
    Open-campus
  • Scholarship Info
  • Admissions Info

Alumni

  • Alumni Directory
  • Alumni Newsletter
  • ThANKS Fund
  • Alumni Login

Academic Programs

  • International Relations
    Program
  • International Development
    Program
  • Public Management and
    Policy Analysis Program
  • Japan-Global Development
    Program
  • MBA
  • One-Year MBA Program
  • PhD Program

Research/Library

  • Library
  • MLIC Computing Services
  • Research Institute
  • GLOCOM
  • Researchers Database

Special Programs

  • GSIR Linkage
  • GSIM Linkage
  • Global Partnership Program
  • Summer Intensive Program
  • Non-Degree Programs
  • Interuniversity Project
  • ICLOVE

On Campus

  • Office of Student Services
  • GSIR Student Info Page
  • GSIM Student Info Page
  • Campus Directory
  • Contact us
  • MyIUJ Login
Copyright © 2022 - International University of Japan | Site Policy | Privacy Policy