Abstract

The study aims to examine the extent of the influence of economic growth, domestic investment, foreign investment and human development index on income distribution inequality in Indonesia in 2018-2022. This type of research is descriptive and associative, the data used is panel data where the research was conducted in Indonesia in 2018-2022. This research uses the Eviews 12 application, the model chosen is the Fixed Effect Model. The F test shows that economic growth, domestic investment, foreign investment and human development index have a significant effect on income distribution inequality. While in the t test, economic growth and foreign investment have a negative and insignificant effect on income distribution inequality, domestic investment has a positive and insignificant effect on income distribution inequality, human development index has a significant negative effect on income distribution inequality The results of the Coefficient of Determination (R2) test found 0.968. This means that 96.8% of the dependent variable is explained by the independent variable, while 3.4% is explained by other variables outside the model or not included in this study.

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