Abstract
Sustainable development can increase economic growth and income distribution more equitable. This become a challenge for the Central Java province with a large area of population in overcoming income distribution inequality. Aims of this study is to determine factors that influence income distribution inequality in Central Java. Panel data regression method with fixed effect models are used. Inequality income distribution as a dependent variable and the independent variables are GRDP, agglomeration of industrial sector, agglomeration of trade, agglomeration of agriculture, inflation, level of labor force participation, and domestic investment. Results show that industrial agglomeration has a positive and significant effect on inequality income between districts and cities in Central Java. GRDP, agricultural agglomeration and level of labor force participation have a negative and significant effect on inequality income between districts and cities in Central Java. The influence of the trade agglomeration, inflation, and domestic investment is not significant to inequality income between districts and cities in Central Java.
Highlights
Implementation of development economic field in Indonesia, has implemented various strategies
Economic level activity is proxied through the Gross regional domestic product (GRDP), shows the average regency and city GRDP in 2010-2018 in Central Java of Rp. 22.0613 trillion
Standard deviation of Rp. 20,945 trillion, which shows the very high variation of GRDP between districts and cities with others. This can be seen from the minimum GRDP value of Rp. 4.01 trillion with a maximum value of Rp 131.14 trillion
Summary
Implementation of development economic field in Indonesia, has implemented various strategies. The strategy adopted by the government is to accelerate development, by changing development policies from centralization to decentralization (Soeharjoto, 2019) It has an impact on the implementation of development in the regions. Needs to be coordinate and synergy between the central and regional governments and the community in managing resources (Soeharjoto et al, 2020) This pattern, can be in form of partnership, so it will absorb labor, which will increase the acceleration of economic growth and equitable distribution of income distribution. Central Java Province has a large area with a dense population Condition of this unique province, still has relatively stable economy (Soekapdjo et al, 2020). The highest population growth was 0.87 % at 2011 and the lowest was 0.68% in 2018
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
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
