Specialization and Geographic Concentration of East Java Manufacturing Industries Erlangga Agustino Landiyanto 1 Sri Kusreni 2 Anindita Pradana 3 Department of Economics and Development Faculty of Economics, Airlangga University Surabaya, East Java, Indonesia June 2005 Abstract 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.. Keyword: Specialization, Concentration, Manufacturing 1 Research Assistant of Laboratorium Pengkajian Ekonomi Pembangunan (LPEP)” Faculty of Economics, Airlangga University; Lecturer Assistant of Department of Economic and Development, Faculty of Economics Airlangga University; and Project Officer of ADOPKOP Indonesia. Email: erlanggaagustino@yahoo.com 2 Head of Department of Economic and Development, Faculty of Economics Airlangga University. Email: enny_sk@yahoo.com 3 Lecturer Assistant and Student of Department of Economic and Development, Faculty of Economics Airlangga University. Email: alph_83@yahoo.com