Impact Of State Restructuring On Indonesias Regional Economic Convergence

Download or read book Impact of State Restructuring on Indonesia's Regional Economic Convergence written by Adiwan Fahlan Aritenang and published by Flipside Digital Content Company Inc.. This book was released on 2017-03-09 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: The creation of the ASEAN Free Trade Area (AFTA) in 1992 and decentralization in 1999 mark the state restructuring in Indonesia. This book analyses the impact of state restructuring on regional economic development in Indonesia between 1993 and 2010. Regional economic analysis shows persistent and severe regional disparities throughout the period. Particularly, econometrics study found that decentralization has accelerated regional disparities whilst the AFTA effect is insignificant on regional economic growth. Furthermore, historical institutionalism analysis on two cities - the manufacturing industry in Batam and the creative economy in Bandung - shows that past and embedded local institutions provide the capacity to adapt and create new development paths. The book suggests the importance of local-specific policies that embrace local knowledge and institutions to develop regional specialization and competitive advantage. This book fills the gap in Indonesian literature that lacks studies on the integrated impact of decentralization and trade liberalization, both economically and politically.