Specialization and Geographic Concentration of East Java Manufacturing Industries

The concentration of spatial economic activities, especially in manufacturing industries has become an interesting phenomenon to be analyzed. In manufacturing industries, spatial concentration is determined by wages, transportation cost, market access, and externalities which relate with localization economies and urbanization economies. The existence of spatial concentration has a relation with industrial specialization which based on industrial structure on that region. The objective of this paper is to describe where the concentration of East Java manufacturing industries is, how the locational distribution of that industries is, and how the relation between the spatial concentration and specialization and industrial structure in East Java is. This paper is using Location Quotient, Herfindahl Index, Elison-Glaeser Index, Krugman regional specialization index and Krugman bilateral index to analyze the data..