Abstract: “The emergence of geographic concentration or clustering has become a central attention in the literature of economic geography, business strategy and national competitiveness. However, we still know little of where and why the phenomenon of clusters across regions, cities, and industries. This paper explores the driving forces underpinning trade-hotel-restaurants clusters in Indonesia by using correlation, trends, and scatter diagrams. The major contribution of this paper has been to incorporate “space” explicitly into economic analysis of clusters and uneven development of industrialization, urbanization, and trade-hotel-restaurant (tourism), within a country.”

Keywords: cluster, urbanization, industrialization, logistic regression, geography