Abstract
West Sumatra Province is one of the provinces with diverse human resources. This situation causes the need for human resource management to encourage economic growth. This study aims to identify economic development, economic inequality and human development, as well as the relationship between economic inequality and human development in West Sumatra Province in 2015-2019. The basic data used in the analysis are GRDP and the Human Development Index (IPM) using quantitative descriptive analysis methods. Economic development was analyzed using Location Quotient (LQ) and Klassen typology, while economic inequality was using Entropy Theil. The research showed that the Klassen typology results were dominated by developed but slow regions which amounted to nine regencies/cities and based on LQ showed that urban areas had a base sector in the secondary and tertiary sectors, while rural areas had a base sector in the tertiary sector. The HDI has increased which is accompanied by an increase in entropy, indicate that high GRDP is not evenly distributed. In addition, there is a strong relationship between economic inequality in terms of GRDP per capita and HDI. This shows an increase in economic growth that triggers improvements in the health and education sectors so that it has a good impact on the quality of human development but needs an even distribution.
Highlights
Economic growth in the development process is influenced by the quality of resources in a human region
The results of this study indicate that the condition of economic development based on the calculation of Location Quotient (LQ) in urban areas has a base sector in the secondary and tertiary sectors, while rural areas have a leading base sector in the tertiary sector
Economic development from Klassen's typology results, West Sumatra Province there are two cities that are included in developed and developing areas, one district is included in the slow growing developed area, eight districts/cities are classified as developing areas, and seven districts/cities are classified as underdeveloped areas
Summary
Economic growth in the development process is influenced by the quality of resources in a human region. The better the quality of human resources, the better the regional economic growth. One of the causes of economic development being hampered is because one of these focuses is still difficult to achieve, the problem is economic inequality. This problem cannot be separated from human development, because good human development will lead to good economic growth. In accordance with statement by the United Nations Development Program (UNDP) through the concept trickle down which explains that economic development will lead to human development, on the contrary in the concept of virtuous circle it explains that human development will lead to economic development. The two components are interconnected as described in the concept of a triangle circle, if one of these components goes well the other components will follow [2]
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