| Summary: | ABSTRACT
This research aims to identify spatial concentration of big and medium manufacturing industries throughout 37 municipalities at East Java. It uses secondary and establishment data BPS (Indonesia's Central Bureau Statistic) since 1994 unti11999 collected. The tools of analysis are geographic information system, logistic regression, regression using panel data and convergence analysis.
The research showed that the industry growth in East Java was not by equally distributed among regions. Several regions have a high industry concentration, meanwhile some have a low industry concentration. Factors that affect the growth are labor cost (salary), export orientation (export), output, competition index (CI), dummy crisis (D ,�) and dummy industry (Died)
Logistic regression analysis showed that, several variables were significantly explained that manufacturing industry are more concentrated on industrial regions. This result is consistent with regression analysis with panel data which shows that the manufacturing industry growth was influenced by those above variables.
Convergence analysis indicated that, East Java Province should growth at least 6.18% per year for its convergence growth. This research challenges Dick's study regarding the balanced development on East Java. It implies that nowadays, East Java is not a best province describing the ideal balanced development.
Keywords: spasial -- convergence � manufacturing industries
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