Abstract

This study aims to determine how the effect of the Farmer's Exchange Rate, Human Development Index, and GRDP of the Agricultural Sector on the inequality of income distribution in the Province of Sumatra Island. The research method used in this research is the descriptive quantitative analysis method. The data used in this study is secondary data with a panel data model using the approach Random Effect Model (REM). This study uses time-series data (time series) from 2015 to 2019. The data analysis tool in this study uses Panel Data Regression. Based on the analysis, it was found that simultaneously (F test) Farmer's Exchange Rate, Human Development Index, and GRDP of the Agricultural Sector had a significant effect on the inequality of income distribution. Then partially (t-test) Farmer's Exchange Rate has a negative and significant effect on income distribution inequality, the Human Development Index has a negative and significant effect on income distribution inequality, and GRDP in the agricultural sector has a negative and insignificant effect on income distribution inequality.

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