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The effect of decentralization and free trade agreements on regional disparity in a developing economy: the case of Indonesia, 1993–2005
Aritenang A.a, Sonn J.W.
a School of Architecture, Planning and Policy Development, Institut Teknologi Bandung, Bandung, Indonesia
b Bartlett School of Planning, University College London, London, United Kingdom
[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]© 2018, © 2018 The Institute of Urban Sciences.Since 1993, Indonesia has experienced both upward and downward restructuring of state power through the ASEAN Free Trade Agreement (AFTA) and fiscal decentralization, respectively. In this study, we investigate the impact of state restructuring on regional disparity. Indonesia is an interesting case because it is one of the few economies in which the upward and downward restructuring of state power occurred almost simultaneously. Based on a panel data analysis of micro-level firm data for the period 1993–2005, we find evidence of neoclassical convergence. Furthermore, decentralization was found to slow this convergence, while the AFTA had no statistically significant impact during the study period.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]decentralization,free trade agreement,Indonesia,regional disparity[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text]During this research, Sonn was financially supported by Ministry of Education of the Republic of Korea and the National Research Foundation of Korea [grant number NRF-2015S1A3A2047036].[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text]https://doi.org/10.1080/12265934.2018.1425155[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]