Does the Crisis Change the Nature of Agglomeration Economies in Indonesia?

By examining their source and magnitude, this paper looked at the changes in the nature of Indonesia’s agglomeration economies over three distinct, successive periods: the pre-crisis boom (1990–1996), the deep crisis (1997–2000), and the post-crisis recovery (2001-2010). We found that economies of l...

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Main Author: Khoirunurrofik Khoirunurrofik
Format: Article
Language:English
Published: ERSA 2020-12-01
Series:REGION
Online Access:https://openjournals.wu-wien.ac.at/ojs/index.php/region/article/view/308
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author Khoirunurrofik Khoirunurrofik
author_facet Khoirunurrofik Khoirunurrofik
author_sort Khoirunurrofik Khoirunurrofik
collection DOAJ
description By examining their source and magnitude, this paper looked at the changes in the nature of Indonesia’s agglomeration economies over three distinct, successive periods: the pre-crisis boom (1990–1996), the deep crisis (1997–2000), and the post-crisis recovery (2001-2010). We found that economies of localisation and urbanisation are both present during the observation periods, with the former generating a stronger effect than the latter. Furthermore, types of agglomeration externalities have significant relationship with variations in size of plants and industrial sectors. These factors shed some light on the nature of agglomeration economies and how the agglomeration sources changed across the crisis periods in favour of localisation economies. The results also demonstrate the industry life cycle at work, as evidenced by changing industry structure during the recovery period.
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spelling doaj.art-d62ec617be0b4b698baf91aacdbd97792023-01-02T16:42:11ZengERSAREGION2409-53702020-12-017210.18335/region.v7i2.308Does the Crisis Change the Nature of Agglomeration Economies in Indonesia?Khoirunurrofik Khoirunurrofik0Universitas IndonesiaBy examining their source and magnitude, this paper looked at the changes in the nature of Indonesia’s agglomeration economies over three distinct, successive periods: the pre-crisis boom (1990–1996), the deep crisis (1997–2000), and the post-crisis recovery (2001-2010). We found that economies of localisation and urbanisation are both present during the observation periods, with the former generating a stronger effect than the latter. Furthermore, types of agglomeration externalities have significant relationship with variations in size of plants and industrial sectors. These factors shed some light on the nature of agglomeration economies and how the agglomeration sources changed across the crisis periods in favour of localisation economies. The results also demonstrate the industry life cycle at work, as evidenced by changing industry structure during the recovery period.https://openjournals.wu-wien.ac.at/ojs/index.php/region/article/view/308
spellingShingle Khoirunurrofik Khoirunurrofik
Does the Crisis Change the Nature of Agglomeration Economies in Indonesia?
REGION
title Does the Crisis Change the Nature of Agglomeration Economies in Indonesia?
title_full Does the Crisis Change the Nature of Agglomeration Economies in Indonesia?
title_fullStr Does the Crisis Change the Nature of Agglomeration Economies in Indonesia?
title_full_unstemmed Does the Crisis Change the Nature of Agglomeration Economies in Indonesia?
title_short Does the Crisis Change the Nature of Agglomeration Economies in Indonesia?
title_sort does the crisis change the nature of agglomeration economies in indonesia
url https://openjournals.wu-wien.ac.at/ojs/index.php/region/article/view/308
work_keys_str_mv AT khoirunurrofikkhoirunurrofik doesthecrisischangethenatureofagglomerationeconomiesinindonesia