IS TERRITORIAL COMPETITION POLICY NECESSARY?: THE CASE OF EAST JAVA'S MANUFACTURING INDUSTRIES

Irawan, Andi (2005) IS TERRITORIAL COMPETITION POLICY NECESSARY?: THE CASE OF EAST JAVA'S MANUFACTURING INDUSTRIES. In: Proceeding 2nd Annual Symposium on Management : Achieving Excellence through Service Management, 16 -17 March 2005, Universitas Surabaya.

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Abstract

Under regional autonomy/decentralisation regime at city level that has been just implemented in Indonesia for about four years, city governments are likely tempted to pursue some sorts of territorial competition policy to affect firms' location decisions. By investigating the spatial pattern of manufacturing industries, there is evidence that the location decisions of industrial activities in East Java is subject to some sorts of agglomeration forces, most notably natural advantages and spillovers (due to both intra and inter-industry linkages). The finding suggests that such policy, especially the short-term, ad hoc, fiscal and financial-based, and politically driven one, that intends to intervene the observed spatial pattern may appear to be useless and/or costly Therefore, it implies that public resources might be better allocated onto measures that are deemed to have more strategic impact for sustainable local economic development (in the case of "eriphery" cities) or to deliver better public services for businesses (in the case of "core" cities).

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Territorial competition, Agglomeration, Spatial spillovers.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Business and Economic > Department of Economic
Depositing User: Karyono
Date Deposited: 13 Apr 2012 07:53
Last Modified: 13 Apr 2012 07:53
URI: http://repository.ubaya.ac.id/id/eprint/346

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