Geographical Economic Concentration, Growth and Decentralization: Empirical Evidence in Aceh, Indonesia

Abd. Jamal



This study aims to analyze the geographical economic concentration (GEC) in Aceh Province. The Decomposition AGC Index and secondary data for the period 2001-2013 are used in the analysis. The results showed that the GEC in Aceh Province tend to decline about -7.09 percents a year. But, since 2011 the growth increased about 1.27 percent a year. It showed five phases of changes of GEC. When the Aceh Province was proliferated from 13 to 23 districts, economic growth was not driving factor for economic concentration, but as a driving for de-concentration. Government spending density is significant for economic concentration driver, both in the period 2001-2007, and 2008-2013. Government spending per capita is the driven factor for economic concentration during the period 2008-2013. As well in Aceh-13 (period 2001-2013). This suggests that direct government expenditure to be important in developing the center of economic growth in Aceh Province.


Geographical Economic Concentration; Government Spending; Population Density; Economic Growth

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