Posts Tagged ‘Regional Disparity’

IS STABILITY FOR REGIONAL DISPARITIES OF UNEMPLOYMENT RATES TRULY MYSTERIOUS? AN ANALYSIS FROM STATISTICAL APPROACH

Tsunetada HIROBE

Professor, Department of Economics, Meikai University, 1 Akemi, Urayasu, Chiba 279-8550, Japan

tsune@meikai.ac.jp

Abstract

The paper analyzes the peculiar phenomenon of regional disparities brought by the changes in the geographical distribution of US unemployment rates. Specifically, we investigate the characteristics concerning the gap of that regional distribution especially focusing upon the statistical analysis by mainly an exploratory way. Reduction in disparities or Expansion in disparities usually involves reducing or increasing the overall level of distribution, and the so-called relative disparity between all states of the U.S. shows an extremely stable transition of distribution within a certain range. This is a mysterious phenomenon that is also shown in any other country in the world. One of the reasons that the regional distribution of unemployment rates becomes stable is derived from the robustness of that geographical distribution; this is one of the reasons that the unemployment rate does not fluctuate significantly. Even if that robustness deteriorates for some reason, then the unemployment rate updates the values of minimum and maximum, or only just the range of variation expands; the relative disparities between regions tend to be offset by increases or decreases in the same direction as a result. Since that range is usually very limited, the gap frequently fluctuates up and down within a confined extent and it does not necessarily converge or diverge to a specific point; it would constantly change within the allowable fluctuation range depending on the socio-economic situation.

Keywords: unemployment rate, regional disparity, convergence, equilibrium, stability

JEL classification: C13, C15, J69, R12, R19

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REGIONAL ECONOMIC DISPARITIES IN EASTERN INDONESIA AND DETERMINANTS: COMPARATIVE ANALYSIS OF ORIGIN DISTRICT AND NEW DISTRICT

Jihad LUKIS PANJAWA

Magister Dept. Of Economics and Development Studies, Graduate School, University of Sebelas Maret (UNS), Indonesia

jihadpanjawa@gmail.com

Bhimo RIZKY SAMUDRO

Dept. Of Economy Development, University of Sebelas Maret (UNS), Indonesia

bhimosamudro@staff.uns.ac.id

Albertus MAQNUS SOESILO

Dept. Of Economy Development, University of Sebelas Maret (UNS), Indonesia

albertussoesilo@staff.uns.ac.id

Abstract

The objective of this research is to know specifically the difference of regional economic disparity and expansion in districts / cities in eastern Indonesia, as well as determinant of disparity base on development indicators covering economic growth, decentralization policy and quality of human resources. This is a quantitative study using econometric methodology. In this methodology, regression with the dummy variable is used to estimate the data. The results showed differences between origin district and new district, where new district showed higher disparities than origin district. Thus, according to Myrdall Theory, regional economic development disparities are caused by larger backwash effects than spread effects occur in Eastern Indonesia. Another important contribution is that fiscal decentralization plays an important role in reducing regional income disparities in new district, while economic growth and human development index have no significant effect on disparities. In the origin district shows different impacts related to fiscal decentralization in which the policy has a significant positive effect on the disparity, while the human development index has a significant negative effect and economic growth has no significant effect on the disparity.

Keywords: Regional Disparity, Development Indicator, Regional Status

JEL classification: P25, R11
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