Scale externalities in Indonesia

Deskripsi

In this paper we excemine the nature and magnitude of local scale externalities for major manufacturing industries in Indonesia in the period 1990-2003. If externalities are in the form of localization, smaller city are more likely to specialize in just one industry or a closely connected industries. On the other hand if the externalities happen to be urbanization in nature, to prosper an industry needs to find a location a diverse and large urban environment. The evidences suggest that localization forces are more dominant than urbanization. The vorces of decentralization would push toward de-concentration, while local agglomeration and specialization would move industries to re-concentrade in smaller, medium size metro areas .Baca di tempat