Abstract
<p><em>Economic growth does not reflect an increase in the welfare of society even though recorded in a high state. What occur now is economic growth is increase but disparities income is wider. The aims of this study to find out more about disparities income. This research used Williamson Index and Theil Entropy Index and focused in Jambi Province in term of time 2010 – 2017. Jambi Province's has unique and strategic location, which is near to the IMS-GT economic growth area (Indonesia, Malaysia, Singapore Growth Triangle). Because of the strategic location, Jambi Province should be able to achieve convergent conditions and become the highest Province in economic gain among others Province in Indonesia. However, in reality the economy state of Jambi province is opposite. The result of this research shows that Jambi Province's income disparity in 2010 - 2017 tends to decrease. But from the Williamson Index calculation, lifting income inequality in Jambi province in 2010-2017 is a high inequality, this can be concluded from the Williamson index value that’s more than 0.5. The main causes of disparity income in Jambi Province is differences in the structure of the economy. The difference in economic structure occurs due to differences in natural resources and human resources. In the other side, based on Theil Entropy Index it was concluded that inequality in Jambi Province in 2010-2017 was classified as low, because the index value was close to 0.</em><em></em></p><p><strong><em>JEL Classification: </em></strong><em>D30, D31, D33</em></p><strong><em>Keywords:</em></strong><em> Disparities, Theil Entropy Index, Williamson Index</em>
Highlights
Regional disparity is one of the problems that occurs in developing country
By using Williamson Inequality index And Theil Entropy Index provides a better picture about disparities of GRDP per capita
The factors causing income disparity in Jambi Province are differences in economic structure caused by differences in natural resources and human resources
Summary
Regional disparity is one of the problems that occurs in developing country. The income distribution should be evenly distributed, and public welfare can be guaranteed. If the rapid increase of economic growth is not in line with income distribution, it will create a gap or income disparities. Disparity in economic development is something that can’t be avoid. This driven by differences in natural resources and infrastructure owned by each region, basically the development gap is inherent with the development process itself (Amirudin, 1992). Economic disparity is often used as an indicator of differences in average per capita income, between groups of income levels, between groups of employment, and between regions. Disparities in regional development occurs quite a lot in developing countries
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