• Agnes Wijaya Jurusan Ilmu Ekonomi Fakultas Bisnis dan Ekonomika Universitas Surabaya
  • Suyanto Suyanto Fakultas Bisnis dan Ekonomika Universitas Surabaya
  • Firman Rosjadi Djoemadi Fakultas Bisnis dan Ekonomika Universitas Surabaya
Abstract Views: 135 PDF - FULL TEXT Downloads: 185
Keywords: Agglomeration Economies, Productivity Growth, Specialisation, Diversity


This study examines the effect of agglomeration economies on productivity growth in Indonesian manufacturing industries for the period of 2008-2012. Productivity growth is measured by using Fare-Primont Productivity Index. The firm productivity growth is regressed against two types of agglomeration: specialisation and diversity. Then, it is also regressed against set of firm and industry characteristic variables : size,ownership, industry concentration, firm exit and firm entry. The results show that specialisation affects the industry positively while negative effect is encountered for diversity to the aggregate manufacturing industry.


Download data is not yet available.


Andersson, M. dan L€o€of, H. (2011), ‘Agglomeration and Productivity: Evidence From Firm-Level Data’, Annal Regional Science, 46, 601–20.

Bhandari, A.K. dan Ray, S.C. (2012), ‘Technical Efficiency in the Indian
Textiles Industry: A non- Parametric Analysis of Firm-Level Data’,
Bulletin of Economic Research, 64, 109–24.

Duranton, G. dan Puga, D. (2000), ‘Diversity and Specialization in Cities: Why, Where and When Does it Matter?’, Urban Studies, 37, 533–55.

Duranton, G. dan Puga,D. (2001), ‘Nursery Cities: Urban Diversity, Process Innovation, and Life-Cycle of Products’, American Economic Review, 91, 1454–77.

Fan, C.C. and Scott, A.J. (2003), ‘Industrial Agglomeration and
Development: A Survey of Spatial Economic Issues in East Asia and a Statistical Analysis of Chinese Regions’, Economic Geography, 79, 295– 319.

Frenken, K., van Oort, F. and Verburg, T. (2005), ‘Variety and Regional Economic Growth in Netherlands’, Working Paper-Utrecht University
05.02. Available from: peeg0502.pdf [Cited 17 March 2013].

Glaeser, E.L., Kallal, H.D., Scheinkman, J.A. and Shleifer, A. (1992), ‘Growth in Cities’, Journal of Political Economy, 100, 1126–52.

Gujarati, D.N. dan Porter, D.C. (2012), Basic Econometrics, 5th edn.
McGraw-Hill/Irwin, New York.

Henderson, V., Kuncoro, A. dan Turner, M. (1995), ‘Industrial
Development in Cities’, Journal of Political Economy, 103, 1067–90.

Hill,H. dan Kalirajan, K.P. (1993), ‘Small Enterprise and Firm-Level
Technical Efficiency in Indonesian Garment Industries’, Applied Economics, 25, 1137–44.

Hill, H., Resosudarmo, B.P. dan Vidyattama, Y. (2008), ‘Indonesia’s
Changing Economic Geography’, Bulletin of Indonesian Economic Studies, 44, 407–35.

Jacob, J. (2005), ‘Late Industrialization and Structural Change: Indonesia,

1975-2000’, Oxford Development Studies, 33, 427–51. Jacobs, J. (1969), The Economy of Cities. Vintage, New York.
Krugman, P. (1998), ‘Increasing Returns and Economic Geography’,
Journal of PoliticalEconomy,99,483–99.

Krugman, P., dan Venables, A. (1995), Globalization and The Inequality of Nations, dalam Matin, P., dan Ottaviano, G, Growth and Agglomeration. International Economic Review; 947-968

Kuncoro, Ari. (2009), ‘Spatial Agglomeration, Firm Productivity, and Government Policies in Indonesia: Concentration and Deconcentration in the Manufacturing Sector’, dalam Huang, Y. dan Bocchi, A.M. (eds), Reshaping Economic Geography in East Asia. The World Bank, Washington, DC; 156–68.

Kuncoro, Mudrajad. (2012). Ekonomika Aglomerasi Dinamika & Dimensi Spasial Kluster Industri Indonesia. Yogyakarta: UPP STIM YKPN.

Lin, Hui. L., Li, Hsiau.Y., dan Yang, Chih.H. (2011), ‘Agglomeration and Productivity: Firm-level evidence from China's textile industry’, China Economic Review, 22, 313-329

Nuryadin, Didi & Sodik, Jamzani. (2007). Aglomerasi dan Pertumbuhan
Ekonomi: Peran Karakteristik Regional di Indonesia. Paralel Session IV A: Urban dan Regional, Wisma Makara, Kampus UI Depok

Porter, M.E. (1988), The Competitive Advantage of Nations. The Free Press, New York.

Quigley, J.M. (1998), ‘Urban Diversity and Economic Growth’, Journal of Economic Perspectives, 12, 127–38.

Sbergami, Federica. 2002. Agglomeration and Economic Growth: Some Puzzles, Graduate Institute of International Studies Geneva.

Setiawan, M., Emvalomatis, G. dan Lansink, A.O. (2012), ‘The
Relationship Between Technical Efficiency and Industrial Concentration: Evidence From the Indonesian Food and Beverages Industry’, Journal of Asian Economics, 23, 466–75.

Soehartono, Irawan. (1995).Metode Penelitian Sosial. Rosda Halaman, Yogyakarta

Singarimbun, Masri., dan Effendi, Sofian. (2006). Metode Penelitian Survey. Jakarta: LP3ES

Wheeler, J.O., Muller, P.O., Thrall, G.I. dan Fik, T.J. (1998), Economic Geography, 3rd edn. John Wiley & Sons, New York.

Widodo, W., Salim, R., dan Bloch, H. (2014) , ‘Agglomeration Economies
and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia’, Economic Record, 90, 41-58.

Most read articles by the same author(s)

1 2 > >>