Disparities in regional productivity, capital accumulation, and efficiency across Indonesia: A club convergence approach
Disparities in regional productivity, capital accumulation, and efficiency across Indonesia: A club convergence approach
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印度尼西亚地区生产力、资本积累和效率的差异:俱乐部趋同方法
DOI:
10.1111/rode.12726
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发表时间:
2020
影响因子:
1.6
通讯作者:
C
中科院分区:
文献类型:
--
作者:
Kataoka;M. and Mendez;C
This paper studies the evolution of regional disparities in labor productivity, capital accumulation, and efficiency across Indonesian provinces over the 1990–2010 period. Through the lens of a nonlinear dynamic factor model, we first test the hypothesis that all provinces would eventually converge to a common steady‐state path. We reject this hypothesis and find that the provincial dynamics of labor productivity are characterized by two convergence clubs. We next evaluate the dynamics of the proximate sources of labor productivity and find some mixed results. On the one hand, physical and human capital accumulation are characterized by three and two convergence clubs, respectively. On the other hand, efficiency is characterized by a unique convergence club. The paper concludes by suggesting that, based on the provincial composition of each club and the common low level of efficiency across Indonesia, considerable improvements in both capital accumulation and efficiency are still needed to reduce regional disparities and accelerate productivity growth.