Revisiting Growth and Poverty Reduction in Indonesia

Satisfactory Essays
ERD WORKING PAPER SERIES NO. 25
ECONOMICS AND RESEARCH DEPARTMENT

Revisiting Growth and Poverty Reduction in Indonesia: What Do
Subnational Data Show?

Arsenio M. Balisacan
Ernesto M. Pernia
Abuzar Asra

October 2002

Asian Development Bank

ERD Working Paper No. 25

REVISITING GROWTH AND POVERTY REDUCTION IN INDONESIA:
WHAT DO SUBNATIONAL DATA SHOW?

Arsenio M. Balisacan
Ernesto M. Pernia
Abuzar Asra

October 2002

Arsenio M. Balisacan is Professor of Economics at the University of the Philippines, while Ernesto M. Pernia is Lead Economist and Abuzar Asra is Senior Statistician at the Economics and Research Department of the Asian Development Bank. The authors gratefully acknowledge the valuable assistance on the data provided by the P.T. Insan Hitawasana Sejahtera, in particular Swastika Andi Dwi Nugroho and Lisa Kulp for advice. Gemma Estrada provided very able research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views or policies of the institutions they represent.

27

ERD Working Paper No. 25
REVISITING GROWTH AND POVERTY REDUCTION

IN INDONESIA:

Asian Development Bank
P.O. Box 789
0980 Manila
Philippines
2002 by Asian Development Bank
October 2002
ISSN 1655-5252
The views expressed in this paper are those of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank.

28

WHAT DO SUBNATIONAL DATA SHOW?

Foreword
The ERD Working Paper Series is a forum for ongoing and recently completed research and policy studies undertaken in the Asian Development Bank or on its behalf.
The Series is a quick-disseminating, informal publication meant to stimulate discussion and elicit feedback. Papers published under this Series could subsequently be revised for publication as articles in professional journals or chapters in books.

29

Contents
I.

Introduction

1

II.

Data and Measurement Issues

4



References: Alesina, A., 1998. “The Political Economy of High and Low Growth.” In B. Pleskovic and J. Stiglitz, eds., Annual World Bank Conference on Development Economics Asra, A., 2000. “Poverty and Inequality in Indonesia: Estimates, Decomposition and Key Issues.” Journal of the Asia Pacific Economy 5(1, 2):91-111. Balisacan, A. M., and E. M. Pernia, 2002. Probing Beneath Cross-National Averages: Poverty, Inequality, and Growth in the Philippines Bhalla, S., 2001. Imagine There Is No Country: Globalization and Its Consequences for Poverty. Chen, S. H., and M. Ravallion, 2001. “How Did the World’s Poorest Fare in the 1990s?” The Review of Income and Wealth 47(3):283-300. Deaton, A., 1997. The Analysis of Household Surveys: A Microeconometric Approach to Development Policy ———, 2001. “Counting the World’s Poor: Problems and Possible Solutions.” World Bank Research Observer 16(2):125-47. Deininger, K., and L. Squire, 1998. “New Ways of Looking at Old Issues: Inequality and Growth.” Journal of Development Economics 57:259-87. Deolalikar, A. B., 2002. Poverty, Growth and Inequality in Thailand. ERD Working Paper Series No Dollar, D., and A. Kraay, 2001. Growth Is Good for the Poor. World Bank Policy Research Paper No Duflo, E., 2001. “Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment.” American Economic Review 91:795-813. Fan, S., L. X. Zhang, and X. B. Zhang, 2000. “How Does Public Spending Affect Growth and Poverty? The Experience of China.” Paper presented at the Second Annual Global Development Network Forbes, K. J., 2000. “A Reassessment of the Relationship between Inequality and Growth.” American Economic Review 90(September):869-87. Foster, J. E., and A. F. Shorrocks, 1988. “Poverty Orderings.” Econometrica 56:173-77. Gallup, J. L., J. D. Sachs, with A. D. Mellinger, 1998. “Geography and Economic Development.” In B Hill, H., 2002. “Spatial Disparities in Developing East Asia: A Survey.” Asia Pacific Economic Literature IMF (International Monetary Fund), 2001. The World Economic Outlook Database. Available: http:/ /www.imf.org/external/pubs/ft/weo/2001/02/data/index.htm#5a. Lanjouw, P., M. Pradhan, F. Saadah, H. Sayed, and R. Sparrow, 2001. “Poverty, Education and Health in Indonesia: Who Benefits from Public spending?” The World Bank, Washington, Krueger, A., and M. Lindhal, 2001. “Education for Growth: Why and For Whom?” Journal of Economic Literature 39(4):1101-36. Kwon, E. K., 2000. “Infrastructure, Growth, and Poverty Reduction in Indonesia: A Cross-Sectional Analysis.” Asian Development Bank, Manila Manning, C., 1997. Regional Labor Markets during Deregulation in Indonesia. Policy Research Working Paper 1728, The World Bank, Washington, D Pernia, E. M., and M. G. Quibria, 1999. “Poverty in Developing Countries.” In E. S. Mills and P. Ravallion, M., 2001. Measuring Aggregate Welfare in Developing Countries: How Well Do National Accounts and Surveys Agree? World Bank Working Paper 2665, Washington, D Ravallion, M., and G. Datt, 2001. When Is Growth Pro-Poor? Evidence from the Diverse Experiences of India’s States Sigit, H., and S. Surbakti, 1999. “The Social Impact of the Financial Crisis in Indonesia.” Economics and Development Resource Center, Asian Development Bank, Manila Skoufias, E., 2000. “Changes in Household Welfare, Poverty and Inequality during the Crisis.” Bulletin of Indonesian Economic Studies 36(August):97-114. Srinivasan, T. N., 2001. “Comment on ‘Counting the World’s Poor’ by Angus Deaton.” World Bank Research Observer 16:157-68. Suryahadi, A., S. Sumarto, Y. Suharso, and L. Pritchett, 2000. “The Evolution of Poverty during the Crisis in Indonesia, 1996 to 1999.” Social Monitoring and Early Response Unit, Jakarta. Tadjoeddin, M. Z., W. I. Suharyo, and S. Mishra, 2001. “Regional Disparity and Vertical Conflict in Indonesia.” Journal of the Asia Pacific Economy 6(3):283-304. World Bank, 2001. World Development Indicators. Washington, D. C.

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