Abstract

This study aims to map the districts/cities in East Java that is classified as having quality economic growth, as well as formulating a concept of quality economic growth by examining several social and economic indicators such as unemployment, income distribution across regions, income distribution among economic sectors, equity investment, and poverty. Using Klassen's typology analysis, it is found that most (19 regions) districts and cities in East Java are in the advanced category but depressed. Meanwhile, there are 8 regions that are classified as advanced and growing rapidly and 10 regions are classified as regions that can grow fast and 1 region classified as relatively underdeveloped, namely Tuban District. While the regions that have qualified economic growth are Lamongan District, Jember District, Probolinggo, Madiun, Batu, Blitar, Pasuruan and Mojokerto. Based on the Fix Effect regression model, it can be concluded that the number of industries and Human Development Index have a significant negative effect on economic growth while the contribution of the primary sector has a significant and positive effect on economic growth.

Highlights

  • Economic growth is an increase in the production of all people in a country from year to year

  • This study aims to map the districts/cities in East Java that is classified as having quality economic growth, as well as formulating a concept of quality economic growth by examining several social and economic indicators such as unemployment, income distribution across regions, income distribution among economic sectors, equity investment, and poverty

  • Based on the Fix Effect regression model, it can be concluded that the number of industries, education facilities and the contribution of tertiary sector have a positive and significant effect on economic growth

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Summary

Introduction

Economic growth is an increase in the production of all people in a country from year to year. Gini ratio that shows indicators of inequality over the last five years still range from 0.4 This inequality is getting worse if compared to the previous years since year 2000. East Java’s high economic growth cannot be said to be quality because of this high economic growth. It is followed by the distribution of income between districts / cities but it has not been followed by equal distribution of income between economic sectors. Research by Nuraini (2017) regarding the map of economic growth between districts and cities in relation to income distribution, it was concluded that most of the districts and cities in East Java are still classified as advanced but depressed (there are 17 districts and cities) which is regions low economic

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