Professional Documents
Culture Documents
to Fulfill a Assignment
Regional Economics Course
Lecturer
Prof. Mudrajat Kuncoro, M.Soc.Sc, Ph.D
1.
Introduction
This study case is in East Kalimantan. The period is from 1993 until 2012.
Penajam Paser Utara is included in Paser regencies and Tana Tidung is included in
Bulungan regencies.
There is 8 strategic areas in the province of East Kalimantan which stated in draft
spatial East Kalimantan province. First area is Industrial Areas of Kariangau and
Buluminung in Balikpapan and PPU. Second area is areas of timber, shipping, industry
and services in Samarinda. Third area is Industrial Area of Gas and Condesate in
Bontang. Fourth area is Special Economic Zone of Maloy Batuta Trans Kalimantan in
East Kutai. The fifth area is Tourism industrial area of Derawan Island in Berau. The
Sixth area is Farm Industrial Estate in Paser and PPU and the seventh area is Farm
Industrial Estate in Kutai Kartanegara and West Kutai. The last area is strategic area
border of Mahakam Ulu.
The GRDP constant of East Kalimantan from 1993 - 2012 tend to increase every
time. Period 2000-2012, GRDP Constant price With Oil and Gas increase significantly
from 82,45 Trillion rupiahs in 1993 to 110.079 Trillion rupiahs in 2012. Period 20002012, GRDP Constant price Without Oil and Gas increase significantly from 82,45
Trillion rupiahs in 1993 to 83.59 Trillion rupiahs in 2012. Oil and Gas dominated the
structure of GRDP East Kalimantan. There is big difference value between GRDP
constant price with oil and gas and GRDP constant without oil and gas. Economic
growth in East Kalimantan and most of the districs is fluctuated.
Figure 1.3 GRDP Constant Price of East Kalimantan 1993 - 2012 (Trillion Rp.)
Figure 1.5 GRDP Growth of Districs in East Kalimantan 1993 - 2012 (%)
The average of GRDP per capita over all districs of East Kalimantan is 59.43
million rupiahs. The districs that have higher GRDP per capita than the average is East
Kutai, Kutai Kartanegara, and Bontang.
The average of GRDP growth over all districs of East Kalimantan is 22.47%. The
districs that have higher GRDP growth than the average is Bulungan, Berau, East Kutai,
Kutai Kartanegara, and Bontang.
Figure 1.7 GRDP Growth Districs in East Kalimantan 1993 - 2012 (%)
2.
Figure 3.1 shows there are some regions that have GRDP per Capita higher than
average GRDP per capita of East Kalimantan. They are Bontang, Balikpapan, Kutai
Kartanegara, and East Kutai. The main sectors that have role in that three regions are
manufacture, mining and quarrying. Regions that have GRDP per Capita lower than
average GRDP per capita of East Kalimantan are Paser, West Kutai, Berau, Malinau,
Bulungan, Nunukan, Samarinda, and Tarakan.
INEQUALITY
1. Economic Inequality
Economic equality among region is phenomenon which has been long
enough existing. Result of development simply has not fully is enjoyed equally
by all layer or various resident factions of all area or equally has not fully can
overcome inequality problems multi region.
Williamson ( 1965) studied about the relation of inter disparity regional
with level of development of economics, by using economics data which has
develop and is being growing, found that during development early stage,
disparity regional becomes bigger and development concentration of in certain
areas. At phase which more matured from growth of economics seen existence
of balance multi region and disparity decreases with significant.
Inequality describes the gap between the rich (high income) and the
poor (low income) (Taylor, 2012). Inequality is different from poverty but
related to it. Inequality concerns variations in living standards across a whole
population. By contrast, poverty focuses only on those whose standard of living
falls below an appropriate threshold level (such as a poverty line) (McKay,
2002).
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a. Williamson Index
Regional inequality can be measured by a formula :
where :
yi
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To make comparison over time/ in certain period, not just in one point of
time
The formula :
Where:
I (y) = total entropy index of spatial inequality in Indonesia
Yi = jobs segment of province i to total GDP in Indonesia
The lower Entropy Theil index, the lower regional inequality.
The higher Entropy Theil index, the higher regional inequality.
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c.
The result of empirical test in 12 regions of East Kalimantan during 19942012 shows the inverted U-curve. It means at the beginning of the growth of
inequality get worse and at subsequent stages inequality decreased, but at a
time the inequality will increase again and finally decreases again. It proves
that East Kalimantan can follow the Kuznets hypothesis.
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Sig (2-tailed)
Williamson Index
0.064
0.79
Theil Index
-0.227
0.336
Source : Processed from
Based on table 3.1, results of the Pearson correlations between GRDP per
capita, williamson index, and Theil index are 0.064 and 0.227. Pearson
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correlations shows linear trend, but the results are not strong in statistics
because it is not significantly proven at =10%.
3.
3.1 Backgrounds
Location quotient (LQ) analysis is a device for gauging the relative specialization
of a region in selected industries (Bendavid-Val, 1991). Location quotient ratio that
provide a convenient way to examine the specialization of economic activity in a region
is basically a way of quantifying how concentrated a particular industry, cluster,
occupation, or demographic group is in a region as compared to the nation.
LQ provides information about (1) what industry the region has and does not have,
(2) the extent to which each industry is under- or overrepresented in the region
compared to the nation (3) the extent to which the region's import of goods and services
can be reduced by production within its area (that is how much import substitution
might be possible) (4) the extent to which the output of its export industries can be
justifiably for export trade enhancement (Kuncoro, 2002). A time series of location
quotients can be computed for relative trend detection (Bendavid-Val, 1991).
Xr/RVr
LQ = ------------------Xn/RVn
Xr/Xn
or
LQ = ----------------RVr/RVn
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Note:
Xr
RVr
Xn
LQ > 1:
LQ < 1:
LQ = 1:
1 gij
g
IPPSij
j
DLQij
IPPSi
1 Gi
1 G
LQ > 1: Development of the sector (i) region (j) higher than other areas of
potential growth sectors in the region set, so in the future if the
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situation does not change then the sector can be expected as the sector
ahead of the competition.
LQ < 1: Potential development of the sector (i) region (j) is lower than the
potential development of other sectors in the region set of area. This
situation shows that as long as the situation remains as it is, then in the
future, this sector will not compete with other areas within the sector
the same set.
3.2.3.
The Leading sector of a districts is when the SLQ > 1 and the DLQ > 1
3.3 Data
Data that have been used in this paper for East Kalimantan cases took from
Kuncoro(2014) forr Gross Domestic Regional Product 1993-2007 and Regional Review
Based on Gross Domestic Product Data Regency / City 2010-2013 Book 3 Kalimantan,
Regional Review Based on Gross Domestic Product Data Regency / City 2009-2012
Book 3 Kalimantan.
3.4. Results of Analysis Using Static Location Quotient (SLQ) and Dynamic
Location Quotient (DLQ)
Live stock, forestry & fishery for 1996, 1998-1999, 2001-2004, 2006-2009,
2012
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Live stock, forestry & fishery for 1994, 1996, 2003, 2005, 2006, 2010, and
2012.
Live stock, forestry & fishery for 1996-1997, 2000, 2003, and 2005.
Electricity, gas, and water supply for 1994-1997, 1999, 2006-2007, 20112012.
Live stock, forestry & fishery for 1997-1998, 2001-2002, 2006, 2008-2010.
Electricity, gas and water supply for 1995-1998, 2004, 2007-2010, 2012.
Electricity, gas, water supply for 1994-1996, 2000, 2003, 2005, 2007, 20102012
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Finance, real estate, business service for 1994, 1996, 1998, 2000, 2012.
Live stock, forestry & fishery for 1994, 1996, 2000, -2001, 2003, 2008-2009,
2012.
Electricity, gas, water supply for 1995-1996, 1998, 2000, 2004-2007, 2009.
Finance, real estate, business service for 1995, 1998, 2000, 2005
Some districts in East Kalimantan still rely on natural resources such as mining and
quarrying, live stock, forestry and fishery as leading sector in economic. However, the
others start to rely on services and trade, hotel and restaurants sector. Table 3.1 shows
three main leading sectors for each district, weather table 3.2 shows three main districts
for each leading sector.
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Paser
West Kutai
Kutai
Kartanegara
East Kutai
Construction
Mining &
Quarrying
Construction
Berau
Services
Malinau
Mining &
Quarrying
Trade, Hotel and
Restaurant
Livestock, Forestry,
& Fishery
Bulungan
Nunukan
Balikpapan
Construction
Samarinda
Construction
Tarakan
Bontang
Services
Manufacturing
Industries
Construction
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Manufacturing Industries
Bontang
Construction
Samarinda, Tarakan
Services
4.
where:
STI = Structural Transformation Index
Share i 1993-2000 =share the component in period before decentralization (year 1993-2000)
Share i 2000-2012 =share the component in period after decentralization (year 2001-2012)
i = 9 sectors that contribute to GRDP
(Kuncoro and Idris, 2010)
Figure 4.1 shows the results of the calculation of STI in East Kalimantan using 9
sectors that contribute to GRDP since 1993 to 2012. The fast structural transformation is
happen in some districts, which are Balikpapan, Nunukan, Pasir, Berau, and the highest
transformation isMalinau. However, only Berau that also gets fast growth of GRDP.
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On the other side, some districts such KutaiTimur, Bontang, Samarinda and Kutai Barat
get high GRDP growth, but in low structural transformation. Kutai Kartanegara,
Tarakan and Bulungan face the low GRDP growth and also low structural
transformation. To see clearer what sector that change in every districts in each
categories, share of 9 sectors to GRDP are tried to be plotted in diagram, as follows:
1.
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Bulungan also categorized as low GRPD growth and low structural transformation
although there is shifting in majority growth sharing from livestock, forestry, and
fishery to mining and quarrying. Start from 2005, mining and quarrying started increase
and surpass livestock, forestry, and fishery sector. The level of structural
transformation, however, is still below the average. The shifting of those sectors can be
seen in figure 4.4.
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2.
average. However, structural transformation is low. Kutai Timur and Kutai Barat always
suspended to mining and quarrying sectors. They never change the structural since 1993
to 2012, as shown in figure 4.5 and figure 4.6. Coal and gas are the most dominant
mining in Kutai Timur and Kutai Barat.
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Bontang has low structural transformation but in high GRDP growth. From figure
4.7, since 1993 to 2012, manufacturing industries take the highest part in sharing to
GRDP growth. There are manufacturing of liquid natural gas (LNG) and fertilizer
manufacturing plant, PT PupukKaltim, in Bontang that run the economic activities in
surrounded area.
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Figure 4.8 shows Samarinda did structural transformation in 2005, when trade, hotel,
and restaurant sector started increasing, while manufacturing industries decrease
overtime since 1998 to 2012. Although only get low structural transformation, the
growth of GRDP getting high.
3.
From figure 4.9, Balikpapan shifting the structure from manufacturing industries to
trade, hotel and restaurant.
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5.
Conclusion
a. Regions that have GRDP per Capita higher than average GRDP per capita of
East Kalimantan are Bontang, Balikpapan, Kutai Kartanegara, and East Kutai
because their main sectors in that three regions are manufacture, mining and
quarrying.
b. Based on Klassen tipology for 1993-2012, Growth poles in East Kalimantan is
East Kutai and the backward region is in West Kutai, Paser, PPU, Bulungan,
Balikpapan, and Tana Tidung.
c. Both of Williamson index and Entropy Theil index, at the beginning of the
growth of inequality get worse and at subsequent stages inequality decreased,
but at a time the inequality will increase again and finally decreases again. It
proves that East Kalimantan can follow the Kuznets hypothesis
d. The most dominant leading sector in East Kalimantan is mining and quarrying
which located in West Kutai,, East Kutai, and Paser.
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e. The low structural transformation and low GRDP happen in Kutai Kartanegara,
Tarakan and Bulungan.
f. The high structural transformation happen in Malinau, Nunukan, and Balikpapan
that also contribute to high GRDP growth.
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REFERENCES
Anonim, 2002, Measuring Inequality: A Practical Workshop and Theory, San Jose,
Costarica.
BPS.
2015.
Electronic
Statistic
Book,
BPS
Online.
Tersedia
di
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