Abstract

Income inequality is one aspect of poverty that needs attention because it is essentially a measure of relative poverty, namely calculating poverty as part of the regional income distribution. Good economic development can be seen from the level of gross regional domestic product per capita (PDRBPKP), Human Development Index (IPM) and Foreign Investment (PMA) in various regions in Indonesia. Changes in each of these variables are influenced by income inequality in various regions. regions, especially in Indonesia. The purpose of this study is to analyze the Gini ratio (income inequality) and the factors that influence it in Indonesia for the 2019-2021 period. This research is a quantitative research. The variables used in this study are Gini ratio, GRDP per capita, Human Development Index, and Foreign Investment. The panel data method is used as an analysis in the form of cross section data from 34 provinces in Indonesia and time series data for 2019-2021. The results of this study indicate that PDRBPKP has a negative effect on income inequality, HDI has a positive effect on income inequality, and FDI has a negative effect on income inequality in Indonesia for the 2019-2021 period.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.