Abstract

Often, backward territories exploit the inequalities of economic and social development to enhance their own economic potential. It can boost economic growth by encouraging innovation and efforts to harness existing local resources. It is important to remember that no development model is suitable for all because each region has different potential and difficulties. The research consists of a free variable, namely economic growth (GDP), investment, and population, and a bound variable that is the inequality of economic development. The aim of this study is to identify the factors that influence the inequality of economic development in Indonesia both simultaneously and partially. The hypothesis is tested using the panel data regression method. Data analyzed with the Eviews10 program. The results of the research showed that in the F (simultaneous) test, economic growth, investment, and population numbers had a positive and significant influence on the inequality of economic development with a sig value of F 0.03<0,05. The results of the t (partial) test showed that economic growth did not have a significant impact on economic development inequality, with a sigt value of 0,054>0.05, investment had no significant impact, with sigt values of 0,93>0.05 and the population variable had a significant effect on the inequity of economic development, with the sigt worth of 0,02<05. So it can be concluded that only the population variable has a significant influence on the economic development inequality of the 34 provinces in Indonesia.

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