Exploring Regional Efficiency Dispersion and Convergence Clusters across Provinces in Indonesia 1990-2010

knitr::opts_chunk$set(
  echo = TRUE,
  message = FALSE,
  warning = FALSE
)
library(tidyverse)
library(plotly)        # interactive figures
library(kableExtra)    # html tables 
library(ggrepel)
library(DT)  

# Change the presentation of decimal numbers to 4 and avoid scientific notation
options(prompt="R> ", digits=2, scipen=999)

1 Synopsis

The paper of Mendez (2019) studies efficiency convergence across provinces in Indonesia over the 1990-2010 period. Results from the distributional convergence framework indicate the existence of two separate convergence clusters within the pure technical efficiency distribution. Moreover, since scale efficiency is characterized by only one convergence cluster, the two clusters of pure technical efficiency appear to be driving the overall efficiency dynamics of Indonesia.

2 Data

dat <- read_csv("FigsTabs/appendixFULL.csv")

# Define function for  interactive table
create_dt <- function(x){
  DT::datatable(x,
                extensions = 'Buttons',
                options = list(dom = 'Blfrtip',
                               buttons = c('copy', 'csv', 'excel', 'pdf', 'print'),
                               lengthMenu = list(c(10,25,50,-1),
                                                 c(10,25,50,"All"))))
}

create_dt(dat)

Source: Efficiency scores are from Kataoka (2018). Efficiency clusters are from Mendez (2019)

3 Plots: Density based clusters

3.1 Pure technical efficiency clusters

PE <- dat %>% 
  ggplot(aes(x = PE1990, 
             y = PE2010,
             shape = ClusterPE,
             color = ClusterPE,
             label = region,
             )
         ) +
  geom_point(size=3) +
  geom_text_repel()

PE

Interactive version:

ggplotly(PE)

3.2 Scale efficiency clusters

SE <- dat %>% 
  ggplot(aes(x = SE1990, 
             y = SE2010,
             shape = ClusterSE,
             color = ClusterSE,
             label = region,
             )
         ) +
  geom_point(size=3) +
  geom_text_repel()

SE

Interactive version:

ggplotly(SE)

3.3 Overall efficiency clusters

OE <- dat %>% 
  ggplot(aes(x = OE1990, 
             y = OE2010,
             shape = ClusterOE,
             color = ClusterOE,
             label = region,
             )
         ) +
  geom_point(size=3) +
  geom_text_repel()

OE

Interactive version:

ggplotly(OE)

4 References

• Kataoka, M. (2018). Inequality convergence in inefficiency and interprovincial income inequality in Indonesia for 1990–2010. Asia-Pacific Journal of Regional Science, 2(2), 297-313.

• Mendez, C. (2019). Regional Efficiency Dispersion, Convergence, and Efficiency Clusters: Evidence from the Provinces of Indonesia 1990-2010. MPRA Working Paper No. 95972, University Library of Munich, Germany.

• Mendez, C. (2020). Regional Efficiency Convergence and Efficiency Clusters: Evidence from the provinces of Indonesia 1990–2010. Asia-Pacific Journal of Regional Science. Forthcoming. Available at https://doi.org/10.1007/s41685-020-00144-w