Abstract
The aims of this research are to analyze whether or not the manufacture industrial agglomeration in West Java Province and to analyze the factors that can affect the agglomeration especially manufacture industrial agglomeration in West Java Province. This research using Hoover Balassa Index and panel data regression with time period data 6 years (2014-2019) and 27 regencies/cities as cross-section data. The results of this research are : (1) there is no manufacture industrial agglomeration in West Java Province, (2) gross regional domestic product has a negative effect on manufacture industrial agglomeration, (3) minimum wage has a positive effect on manufacture industrial agglomeration, (4) population has a negative effect on manufacture industrial agglomeration. As an implication of the conclusion above, every province or regency/city should seek and make their region as a pole of the agglomeration and the effort that can be done are create some regulations which can support industrial establishment and development easier, giving the information about business and capital, create some regulations about wage, building partnership among companies to create backward and forward linkage.Keywords: Agglomeration, Hoover Balassa Index, Concentration Index
Highlights
Economic development is long-term efforts aimed at increasing the standard of living of the nation which can be measured by the level of real income per capita
Development in the industrial sector is part of the long-term national development plan considering that the industrial sector can make a large contribution to Gross Domestic Product (GDP)
This study aims to analyze whether large and medium processing industry agglomerations occur or not in West Java Province and the factors that influence it
Summary
Economic development is long-term efforts aimed at increasing the standard of living of the nation which can be measured by the level of real income per capita. Development in the industrial sector is part of the long-term national development plan considering that the industrial sector can make a large contribution to Gross Domestic Product (GDP). The development of the industrial sector is almost always given higher priority in the development plans of developing countries. This is not without reason but because the industrial sector is considered one of the leading sectors that can drive growth and development in other sectors such as agriculture and services (Arifin, 2006)
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