Developing New Method in Measuring City Economic Resilience by Imposing Disturbances Factors and Unwanted Condition

Abstract

Recent research uses an index to measure economic resilience, but the index is inadequate because it is impossible to determine which disturbance factors have the greatest impact on the economic resilience of cities. This study aims to develop a new methodology to measure the economic resilience of a city by simultaneously examining unwanted conditions and disturbance factors. The ratio of regional original income to the number of poor people is known as Z and is identified as a measure of economic resilience in Indonesia. Resilience is measured by Z’s position in relation to the unwanted area following a specific level of disturbance. If Z is in the unwanted condition, the city’s per capita income will decrease, and the city will be considered economically not resilient. The results of the analysis show that six levels of economic resilience have been successfully distinguished based on research on 514 cities in Indonesia involving nine indicators of disturbance and one variable of economic resilience during the five-year observation period, 2015–2019. Only 3.11 percent of cities have economic resilience level 1, while 69.18 percent have level 0. Economically resilient cities consist of 4.24 percent of cities at level 2, as much as 3.39 percent at level 3, as much as 3.39 percent at level 4, and as much as 16.69 percent at level 5. The novelty of this research is to provide a new methodology for measuring the economic resilience of cities by integrating unwanted conditions as necessary conditions and disturbance factors as sufficient conditions. The measurement of a city’s economic resilience is critical to help the city government assess the security of the city so the government can take preventive actions to avoid the cities falling into unwanted conditions.