Economic zones and local income inequality
Evidence from Indonesia
Bibliographic Data
| ID | 12836780 |
|---|---|
| Authors | Cecília Hornok (0000-0001-5680-3206, Kiel Institute for the World Economy, corresponding author), Dewa Gede Sidan Raeskyesa (0000-0002-3455-5229, Vienna University of Economics and Business) |
| Year | 2023 |
| Volume | 22 |
| Issue | 1 |
| Pages | 69-100 |
| Publication date | 2023-05-31 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic Inequality (JOURNAL) |
| Journal identifiers | ISSN: 1569-1721 • E-ISSN: 1573-8701 |
| Publisher | Springer Science+Business Media (PUBLISHER • DE) |
| DOI | 10.1007/s10888-023-09581-x |
| OpenAlex | W4378905208 |
| Language | EN |
| Citations received | 5 |
| References cited | 44 |
Economic zones can be powerful drivers of economic growth in developing countries. However, less is known about their distributional impact on the local society. This paper provides empirical evidence from Indonesian provinces on the relationship between economic zones and within-province income inequality. We apply fixed-effects panel estimation to province-level data for the whole of Indonesia, which we then complement with separate studies on the opening of three economic zones in three provinces using the synthetic control method. The results suggest that the above relationship is positive overall. The estimated rise in income inequality after a zone opens is, however, relatively small on average and may be short-lived. Moreover, the average estimate masks large regional differences, which suggests that the inequality implications of economic zone policies depend on local conditions. One possible explanation for the rise in inequality is that the unskilled population benefits disproportionately less from the policy
Demographic economics · Development economics · Econometrics · Economic inequality · Economics · Estimation · Income distribution · Indonesian · Inequality · Panel data · Population · Economic Zones and Regional Development · Fiscal Policy and Economic Growth · Regional Economics and Spatial Analysis
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| Unique citing works | 5 |
|---|---|
| Citations per year | 2,5 |
| Citation span | 2024 - 2026 (3) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 5 |