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Globalization, Inequality, and Local‐level Dynamics: Indonesia and the Philippines

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  • Hal HILL

Abstract

Subnational disparities and center–region relations are increasingly important issues in both the development economics literature and East Asian policy circles. Almost all developing countries in East Asia are actively decentralizing power and resources from the center. Analytically, there is growing interest in spatial economics, arising out of the fusion of economics and geography. This paper examines these issues with reference to Indonesia and the Philippines. Both countries are well suited to such a study: they are the two largest archipelagic nations in the world, they both feature great subnational diversity, and they have both adopted major decentralization programs, in similar circumstances. We conclude that, in aggregate, there have been no major changes in regional inequality in either country, although this conclusion is sensitive to the selection of economic indicators. In general, the regions that are the best connected to the global economy have grown more rapidly.

Suggested Citation

  • Hal HILL, 2008. "Globalization, Inequality, and Local‐level Dynamics: Indonesia and the Philippines," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 42-61, June.
    • Handle: RePEc:bla:asiapr:v:3:y:2008:i:1:p:42-61
    DOI: 10.1111/j.1748-3131.2008.00087.x
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    1. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    2. Takahiro Akita, 2002. "Income Inequality in Indonesia," Working Papers EMS_2002_02, Research Institute, International University of Japan.
    3. Takahiro Akita, 2002. "Regional Income Inequality In Indonesia And The Initial Impact Of The Economic Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(2), pages 201-222.
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    6. Balisacan, Arsenio M. & Hill, Hal (ed.), 2003. "The Philippine Economy: Development, Policies, and Challenges," OUP Catalogue, Oxford University Press, number 9780195158984.
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    Cited by:

    1. Mitsuhiko Kataoka, 2016. "Interprovincial efficiency differentials in Indonesia's pre-and post-crisis economy," ERSA conference papers ersa16p412, European Regional Science Association.
    2. Andrés Rodríguez-Pose & Roberto Ezcurra, 2010. "Does decentralization matter for regional disparities? A cross-country analysis," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 619-644, September.
    3. Takatoshi ITO & Akira KOJIMA & Colin McKENZIE & Shujiro URATA, 2009. "Editors’ Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 4(1), pages 1-18, June.
    4. Omar Shahabudin McDoom & Celia Reyes & Christian Mina & Ronina Asis, 2019. "Inequality Between Whom? Patterns, Trends, and Implications of Horizontal Inequality in the Philippines," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 923-942, October.
    5. Arief Anshory Yusuf & Andy Sumner & Irlan Adiyatma Rum, 2014. "Twenty Years of Expenditure Inequality in Indonesia, 1993-2013," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 243-254, August.
    6. Jorge Martinez-Vazquez & Santiago Lago-Peñas & Agnese Sacchi, 2017. "The Impact Of Fiscal Decentralization: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 1095-1129, September.
    7. Masahisa Fujita & Nobuaki Hamaguchi, 2011. "Regional Integration of Production Systems and Spatial Income Disparities in East Asia," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume II, chapter 11, Edward Elgar Publishing.
    8. Mitsuhiro Hayashi & Mitsuhiko Kataoka & Takahiro Akita, 2014. "Expenditure Inequality in Indonesia, 2008–2010: A Spatial Decomposition Analysis and the Role of Education," Asian Economic Journal, East Asian Economic Association, vol. 28(4), pages 389-411, December.
    9. Nobuaki Hamaguchi & Wei Zhao, 2011. "Economic Integration and Regional Disparities in East Asia," Chapters, in: Masahisa Fujita & Ikuo Kuroiwa & Satoru Kumagai (ed.), The Economics of East Asian Integration, chapter 15, Edward Elgar Publishing.
    10. Takahiro AKITA, 2008. "Comment on “Globalization, Inequality, and Local‐level Dynamics: Indonesia and the Philippines”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 64-66, June.
    11. Takahiro Akita & Sachiko Miyata, 2018. "Spatial Inequalities in Indonesia, 1996–2010: A Hierarchical Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 829-852, August.
    12. Muhammad Haseeb & Tulus Suryanto & Nira Hariyatie Hartani & Kittisak Jermsittiparsert, 2020. "Nexus Between Globalization, Income Inequality and Human Development in Indonesian Economy: Evidence from Application of Partial and Multiple Wavelet Coherence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 723-745, February.

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