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Growth in I ndonesia's manufacturing sectors: Urban and localization contributions
Author(s) -
Day Jennifer,
Ellis Peter
Publication year - 2013
Publication title -
regional science policy and practice
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.342
H-Index - 8
ISSN - 1757-7802
DOI - 10.1111/rsp3.12015
Subject(s) - urbanization , manufacturing sector , economic geography , manufacturing , business , industrial organization , economics , international economics , economic growth , marketing
Abstract This paper examines the factors influencing the growth of four dominant and growing manufacturing sectors in I ndonesia. The main purpose of this paper is to discriminate between localization economies and urbanization processes and their contributions to growth in selected manufacturing sectors in I ndonesia. A secondary purpose is to identify the characteristics of local places that facilitate or hinder economic growth in the manufacturing sectors. We conclude that the studied manufacturing sectors benefit from localization economies, but that urbanization is largely not a contributor to growth in manufacturing. This suggests that new and geographically‐isolated growth poles are probably not a viable growth option for I ndonesia's manufacturing sector. Rather, decreasing the economic distance between vertically and horizontally‐linked firms would be more conducive to growth.