Table 5.

Robustness checks

Dependent variable (%)(S5.1)(S5.2)(S5.3)(S5.4)(S5.5)(S5.6)
Aggregate productive efficiency
All yearsIncome below medianCrisis of 1997–1998Income and crisisJakarta and YogyakartaIncome, crisis and special regions
ALC50.107 (12.459)***53.068 (12.858)***50.555 (14.106)***53.602 (11.610)***50.017 (12.048)***53.602 (13.990)***
G66.743 (15.935)***69.425 (16.102)***66.764 (17.480)***69.475 (15.177)***66.637 (15.615)***69.475 (17.110)***
G × ALC−71.029 (16.978)***−73.870 (17.147)***−71.053 (18.616)***−73.926 (16.167)***−70.917 (16.619)***−73.926 (18.216)***
P × ALC1.037 (0.481)**1.102 (0.465)**1.095 (0.603)*1.168 (0.478)**1.035 (0.438)**1.168 (0.525)**
TROPEN0.018 (0.023)0.023 (0.024)0.022 (0.027)0.027 (0.024)0.017 (0.023)0.027 (0.024)
Log(POP)−0.114 (0.121)−0.098 (0.114)−0.098 (0.155)−0.080 (0.124)−0.113 (0.105)−0.080 (0.117)
Log(AREA)0.228 (0.209)0.172 (0.199)0.201 (0.265)0.141 (0.227)0.229 (0.177)0.141 (0.213)
LFPR−0.003 (0.001)**−0.003 (0.001)**−0.003 (0.001)**−0.003 (0.001)**−0.003 (0.001)***−0.003 (0.001)*
WTA0.004 (0.003)*0.004 (0.003)*0.005 (0.002)**0.004 (0.002)**0.005 (0.003)*0.004 (0.002)*
PRIM0.095 (1.133)0.081 (0.535)0.096 (0.969)0.082 (0.722)0.095 (0.962)0.082 (1.112)
UPRIV−0.019 (0.099)0.021 (0.060)−0.016 (0.081)−0.017 (0.090)−0.018 (0.075)−0.017 (0.086)
USTATE−0.0009 (0.046)−0.001 (0.039)−0.001 (0.051)−0.001 (0.033)−0.001 (0.029)−0.001 (0.032)
FORSHARE−0.012 (0.064)−0.008 (0.061)−0.010 (0.083)−0.005 (0.060)−0.011 (0.084)−0.005 (0.073)

FISHARE
−0.076 (0.214)−0.035 (0.237)−0.083 (0.164)−0.042 (0.181)−0.076 (0.137)−0.042 (0.185)
PADDY0.009 (0.003)***0.008 (0.003)**0.009 (0.004)**0.007 (0.003)**0.009 (0.004)**0.007 (0.003)**
CASSAVA0.000 (0.000)0.000 (0.000)0.000 (0.000)0.00005 (0.0004)0.0001 (0.0004)0.0001 (0.0004)
SWEET0.002 (0.0005)***0.001 (0.0004)***0.002 (0.0005)***0.001 (0.0005)**0.002 (0.0004)***0.001 (0.0004)***
BUDGET−0.476 (0.503)−0.357 (0.893)−0.476 (0.398)−0.355 (0.512)−0.476 (0.412)−0.355 (0.741)
MEDINC −0.049 (0.012)*** −0.049 (0.012)*** −0.049 (0.010)***
CRISIS  −0.015 (0.014)−0.016 (0.013) −0.016 (0.014)
JAKYOG    −1.496 (1.358)−2.053 (1.208)*
Year dummiesYesYesYesYesYesYes
Province dummiesYesYesYesYesYesYes
Constant−48.249 (11.780)***−50.521 (12.203)***−48.700 (13.355)***−51.052 (11.603)***−48.249 (11.157)***−51.052 (13.278)***
Observations356356356356356356

Notes:

Bootstrapped standard errors in parentheses. Significance levels are defined as ***p < 0.01, **p < 0.05 and *p < 0.1. G stands for linguistic diversity; P = Linguistic polarization; ALC = Index of absolute linguistic clustering; POP = Population; LFPR = Labor force participation rate; WTA = Ratio of the number of workers to the number of economically active population; PRIM = Teacher to pupil ratio in primary schools; UPRIV = Professors to students ratio in private universities and USTATE = Professors to students ratio in state universities. FORSHARE is the ratio of the forests to the provinces’ total areas, FISHARE = The percentage of households employed in the fishery sector, PADDY = Yield rate of rice paddy fields; CASSAVA = Cassava yield rates; SWEET = Sweet potato yield rates; BUDGET is the ratio of the provincial government’s budget balance to the value of regional GDP and TROPEN is the ratio of the freight in tons loaded and unloaded in the provinces’ ports that either originates abroad or is destined to be shipped abroad to the total weight of the loaded and unloaded cargo. MEDINC = 1 if the province's income is less than the country's median income. CRISIS = 1 for the crisis years of 1997 and 1998. JAKYOG = 1 for the regions of Jakarta and Yogyakarta

Source: Author’s own calculations

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