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Trade Liberalization and the Geography of Production : Agglomeration, Concentration and Dispersal in Indonesia’s Manufacturing Industry

Sjöberg, Örjan and Sjöholm, Fredrik LU (2004) In Economic Geography 80(3). p.287-310
Abstract
The effect of the liberalization of trade on the spatial concentration of economic activities is not straightforward. It has been widely argued that protectionism increases spatial concentration as firms locate close to the main domestic markets. However, it has also been argued that an expansion of international trade primarily favors existing industrial centers and therefore leads to increased regional inequalities. Against the background of ongoing debates in both mainstream economics and in geography, we examine the spatial concentration of manufacturing in Indonesia between 1980 and 1996, a period when Indonesia substantially liberalized its trade regime. The high concentration did not decrease during this period, and establishments... (More)
The effect of the liberalization of trade on the spatial concentration of economic activities is not straightforward. It has been widely argued that protectionism increases spatial concentration as firms locate close to the main domestic markets. However, it has also been argued that an expansion of international trade primarily favors existing industrial centers and therefore leads to increased regional inequalities. Against the background of ongoing debates in both mainstream economics and in geography, we examine the spatial concentration of manufacturing in Indonesia between 1980 and 1996, a period when Indonesia substantially liberalized its trade regime. The high concentration did not decrease during this period, and establishments that engaged in international trade were actually comparably concentrated. We discuss some possible explanations for the spatial concentration in Indonesia and conclude that a host of factors may affect the outcome of trade liberalizations. In particular, the spatial configuration of the national settlement system is a potentially important factor in this regard. (Less)
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author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
trade policy, agglomeration, manufacturing, Indonesia, settlement system
in
Economic Geography
volume
80
issue
3
pages
24 pages
publisher
Economic Geography
external identifiers
  • scopus:6344221868
ISSN
0013-0095
DOI
10.1111/j.1944-8287.2004.tb00236.x
language
English
LU publication?
no
id
d836ec69-5766-4647-b168-da6c2f41bd12
date added to LUP
2017-10-10 17:36:39
date last changed
2017-12-10 05:12:41
@article{d836ec69-5766-4647-b168-da6c2f41bd12,
  abstract     = {The effect of the liberalization of trade on the spatial concentration of economic activities is not straightforward. It has been widely argued that protectionism increases spatial concentration as firms locate close to the main domestic markets. However, it has also been argued that an expansion of international trade primarily favors existing industrial centers and therefore leads to increased regional inequalities. Against the background of ongoing debates in both mainstream economics and in geography, we examine the spatial concentration of manufacturing in Indonesia between 1980 and 1996, a period when Indonesia substantially liberalized its trade regime. The high concentration did not decrease during this period, and establishments that engaged in international trade were actually comparably concentrated. We discuss some possible explanations for the spatial concentration in Indonesia and conclude that a host of factors may affect the outcome of trade liberalizations. In particular, the spatial configuration of the national settlement system is a potentially important factor in this regard.},
  author       = {Sjöberg, Örjan  and Sjöholm, Fredrik},
  issn         = {0013-0095},
  keyword      = {trade policy,agglomeration,manufacturing,Indonesia,settlement system},
  language     = {eng},
  number       = {3},
  pages        = {287--310},
  publisher    = {Economic Geography},
  series       = {Economic Geography},
  title        = {Trade Liberalization and the Geography of Production : Agglomeration, Concentration and Dispersal in Indonesia’s Manufacturing Industry},
  url          = {http://dx.doi.org/10.1111/j.1944-8287.2004.tb00236.x},
  volume       = {80},
  year         = {2004},
}