Industrial Park and Welfare Effect: A Preliminary Evidence from Indonesia
How can the presence of industrial parks affect the welfare of the people in the districts/city within which they operate? While studies about the socio-political and economic consequences of industrial parks abound in the academic world, industrial parks are still understudied in Indonesia. the paper is a preliminary observation on the relationship between the presence of industrial parks and the welfare conditions of the people in the districts. Using two measures of welfare, human development index and household spending, we find that the presence of industrial parks has some positive effects on these two measures. The two models of the bivariate relationships show that the relationships are statistically significant. Nevertheless, the study still suffers from some weaknesses that future studies can improve.