caa a22 4500 397559178 CHVBK 20180308164811.0 cr unu---uuuuu 161202e199609 xx s 000 0 eng 10.1093/wber/10.3.513 doi (NATIONALLICENCE)oxford-10.1093/wber/10.3.513 Industrial Centralization in Indonesia [Elektronische Daten] [J. Vernon Henderson, Ari Kuncoro] In certain situations, economic liberalization policies can increase the degree of spatial centralization of resources and spatial concentration of manufacturing in large metropolitan areas. In addition, historical patterns of location make it difficult to alter the degree of centralization. This article explores these issues by specifying and estimating a nested logit model of industrial location of manufacturing activity in Java, focusing on the unincorporated sector. The results indicate that plants strongly prefer locations with mature plants in related industries, which offer a built-up stock of local knowledge. In addition, the 1983 liberalization in Indonesia was associated with increased centralization of the unincorporated sector. Although the liberalization gave unincorporated firms better access to government and other centralized services, firms needed to centralize to take advantage of these opportunities because the bureaucratic process is centralized and communications are poor. The relative increased growth of the corporate sector following liberalization may also have helped to further draw unincorporated plants into centralized locations. © 1996 The International Bank for Reconstruction and Development / THE WORLD BANK Articles nationallicence Henderson J. Vernon aut Kuncoro Ari aut The World Bank Economic Review Oxford University Press 10/3(1996-09), 513-540 0258-6770 10:3<513 1996 10 wber https://doi.org/10.1093/wber/10.3.513 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1093/wber/10.3.513 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Henderson J. Vernon aut NATIONALLICENCE 700 1- Kuncoro Ari aut NATIONALLICENCE 773 0- The World Bank Economic Review Oxford University Press 10/3(1996-09), 513-540 0258-6770 10:3<513 1996 10 wber Metadata rights reserved CC BY-NC-4.0 http://creativecommons.org/licenses/by-nc/4.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-oxford