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Jurnal Ekonomi & Bisnis Indonesia


concentration, inequality, manufacturing , Java region


  1. Setyo Tri Wahyudi
  2. Mohd Dan Jantan




      Concentration of manufacturing
      is an interesting topic in location of economic activity since manufacturing
      was the leading sector in the Indonesian economy. The previous studies
      demonstrated that firms was localized in major metropolitan areas as well as a
      set of emerging regions. The paper aim to complement the finding of the
      previous studies related to geographical concentration of manufacturing
      industry by exploring the impact of manufacturing concentration on regional inequality
      in the regency in Java during the 1998-2007. The Theil index and the location
      quontient index are employed in order to analysis the inequality and the
      location of manufacturing industry in Java region.

       The study found that the Theil
      index shows an increasing trend implying that the inequality of the
      manufacturing industry within regencies has increase. While, the inequality
      between regency shows a decreasing trend over the period of observation
      implying that the manufacturing industry in Java spreads only in several
      regencies. The location quotient index shows and increasing trend that reveals
      the economy of some regencies are more dependent in manufacturing industry and
      at the same time it shows that several new manufacturing areas has emerged in Java.


      Vol 27, Nomor 01, Tahun 2012


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