Economic Development Inequality Research Articles

Analisis Faktor-Faktor yang Mempengaruhi Ketimpangan Pembangunan pada 34 Provinsi di Indonesia Ditinjau dari Perspektif Ekonomi Islam

Often, backward territories exploit the inequalities of economic and social development to enhance their own economic potential. It can boost economic growth by encouraging innovation and efforts to harness existing local resources. It is important to remember that no development model is suitable for all because each region has different potential and difficulties. The research consists of a free variable, namely economic growth (GDP), investment, and population, and a bound variable that is the inequality of economic development. The aim of this study is to identify the factors that influence the inequality of economic development in Indonesia both simultaneously and partially. The hypothesis is tested using the panel data regression method. Data analyzed with the Eviews10 program. The results of the research showed that in the F (simultaneous) test, economic growth, investment, and population numbers had a positive and significant influence on the inequality of economic development with a sig value of F 0.03<0,05. The results of the t (partial) test showed that economic growth did not have a significant impact on economic development inequality, with a sigt value of 0,054>0.05, investment had no significant impact, with sigt values of 0,93>0.05 and the population variable had a significant effect on the inequity of economic development, with the sigt worth of 0,02<05. So it can be concluded that only the population variable has a significant influence on the economic development inequality of the 34 provinces in Indonesia.

Space–time exploration of the east–west gap in economic development and digital financial inclusion: evidence from China pre and post-COVID-19

The East–West imbalance in China’s economic development has profoundly affected all aspects of society, but the emergence of digital financial inclusion offers potential opportunities to address this issue. This study examines 31 provinces in China from 2011 to 2020, and Exploratory Space–time Data Analysis is employed to specify the temporal and spatial changes in the East–West disparity in economic development and digital financial inclusion. The main findings are: First, inequality in economic development is associated with a decline in spatial autocorrelation. With the acute exacerbation of inequalities after the pandemic, enhancing spatial dependence through regional cooperation would be conducive to reducing disparities. Second, economic development, digital financial inclusion, and its components (usage and coverage) have hot spots in the East and cold spots in the West. Before the pandemic, significant advancements in the West mitigated the East–West gap, but the East–West divergence in economic development worsened after the COVID-19 explosion. Third, distinct from economic development, digital financial inclusion and its key elements (usage) not only have a growing regional dependence, but also that the pandemic has not disrupted improvements in the West. More importantly, there is a significant regional overlap between digital financial inclusion, usage, and economic development, implying spatial and attributable connections among them. Consequently, governments should consider digital financial inclusion as a policy tool to relieve the worsening inequality in economic development between the East and West during the post-pandemic stage.

Mapping the dynamics of FDI in China: Convergence, divergence, and policy insights within free trade zones and beyond

The uneven distribution of FDI contributes to inequality in economic development. Most studies on FDI in China use provincial data and parametric tools of analysis while delivering mixed findings regarding FDI’s distribution and free trade zones (FTZs) attractiveness. We investigate the convergence and transitional dynamics of relative FDI (RFDI) in China using visual tools of the distribution dynamics approach to a panel of 273 prefectural cities from 2003 to 2019. Convergence-divergence patterns are examined from inter- and intra-regional perspectives and FTZs vis-à-vis non-FTZ cities. In the long run, most entities within each region converge towards different RFDI values (from 0.05 to 0.25), far below the national average equal to one. FDI is the most unevenly distributed within the poorest western region. Furthermore, three (two) convergence clubs emerge among the non-FTZ (FTZ) entities around RFDI values of 0.05, 0.6 and 2.7 (2.5 and 10). The results corroborate the New Growth and New Economic Geography theories, indicating an absence of desirable spatial diffusion from affluent ‘core’ cities and FTZs to ‘peripheral’ entities outside the FTZs. Additionally, we provide a ‘policy priority list’ comprising western cities with above (below) average RFDI and the highest propensity to diverge further above (below) the national mean.

The Effect of Musyarakah Financing on Economic Development in Indonesia (Case Study on Islamic Commercial Banks for the 2018-2022 Period)

This research is motivated by the inequality of economic development in Indonesia through the achievement of the Human Development Index in each province in Indonesia. Then, Islamic Commercial Banks carry out the technical sharing of the results of the musyarakah financing business with net revenue sharing, so that Islamic Commercial Banks tend not to know the working capital rotated by customers experiencing losses or profits. The purpose of this study is to analyze the effect of musyarakah financing on economic development. This study uses an empirical juridical approach with quantitative research types and analytical descriptive research methods. The data used is panel data from Islamic Commercial Banks registered with the Financial Services Authority (OJK) for the 2018-2022 period. The sampling method used in this research is a non-probability sampling technique, while the data processing method is regression analysis using EViews 12. The results of this study indicate that musyarakah financing has an insignificant positive effect on economic development with the Human Development Index as an indicator with a significance level of 0.2113 greater than 0.05. The coefficient of determination with an adjusted R square value of 0.017605 indicates that the influence of musyarakah on economic development is 1.7605%, while the remaining 98.2395% is influenced by other variables outside the study.

The Collapse of Democracy in Chile

The study of the de-democratization occurring in emerging democracies is one of the key research topics in comparative political science. Some scholars have found that the breakdown of democracy is related to some social structural factors. For example, the inequality of economic development, the degree of political fragmentation of the electorate, and the political institutional arrangements of democracies. Other scholars argue that the collapse of democracy is the result of the actions and choices of political elites. In order to preserve their wealth and status, political elites formed powerful coalitions to undermine democracies, which led to the reversal of democracy into authoritarian regime. Yet there is no single explanation for Chile's democratic collapse. Therefore, this study reviews the literature on the theory of democratic collapse, and analyzes the causes of the democratic collapse in Chile by combining the economic and social conditions of Chile in 1973. The research finds that Chile's democratic collapse is the result of a combination of elite revolt behavior and centrifugal political institutional arrangements. The intense class conflict violates the interests of the political elite and causes the political elite to rebel. At the same time, the centrifugal arrangement of the political system has left the state and the government lacking the ability to effectively counter the revolt behavior of the political elite.

Large but overlooked carbon differentiations inside China's provinces matters to mitigation strategies design: Evidence from county-level analysis

In China, wide variations exist not only among different provinces, but also inside provinces. Therefore, intensive policy adjustments are essential for promoting carbon neutral in China, which calls for a clear understanding of carbon emission disparities in each individual province. Based on panel data of 2001 county-level administrative areas from 2004 to 2017, we use Theil index and spatial regression models to measure contributions and distributions of intra-provincial carbon inequality, as well as effects of intra-provincial economic inequality on intra-provincial carbon inequality, in order to design provincial specific strategies considering carbon differentiations inside each province. Our main contributions are studying China's carbon inequality from intra- instead of inter-provincial perspectives and exploring spatial connections of carbon inequality, which has not been fully discussed in previous studies. The empirical results indicate that intra- rather than inter- provincial carbon inequality contributes the majority of China's overall carbon inequality. Intra-provincial inequality shows high levels of regional clustering and decrease from west to east, although their differences are smaller in 2017 than 2004, mainly because carbon inequality levels experience large declines in some central and western provinces. Low carbon inequality levels in eastern provinces are mainly attributed to very negative correlation between development levels and carbon intensity. Intra-provincial economic development inequality plays nonnegligible roles in intra-provincial carbon inequality in all provinces, although they are not the major driving factors in some provinces. There also exist positive spatial spillover effects of intra-provincial economic inequality on intra-provincial carbon inequality. We provide specific policy suggestions on key areas of carbon emission reductions and demand degree of economic transitions for each individual province and also evaluate effects of “common prosperity” measures, which have been frequently discussed recently, on intra-provincial carbon distributions.

The Influence of Foreign Investment and Domestic Investment on Inequality in Economic Development between Regions in Java Island in 2012-2021

Economic Development Inequality is a serious problem, and many factors influence it. This study aims to determine how the influence of Foreign Investment and Domestic Investment on Economic Development Inequality between regions in Java for the period 2012 to 2021. Economic Development Inequality is measured using an inequality measurement tool called the Williamson Index. The calculation results show that Foreign Investment has no effect and is not significant on Economic Development Inequality. Domestic investment has an effect and is significant on Economic Development Inequality.

PROBLEMATIKA PEMBANGUNAN PARIWISATA BUDAYA DI DESA PULAU MARINGKIK

Cultural tourism or "cultural tourism" in Maringkik as one of the strategies to reduce regional and economic development inequality, where this tourism is managed by community groups that collaborate with the government, as well as institutions outside the government. Community-based social tourism can be a tool for nature conservation and reducing cultural assimilation. This research is an activity that focuses on examining and analyzing the traditions and culture of the Maringkik people from the perspective of community tourism development. This problem is studied with the aim of increasing the knowledge of the Maringkik community regarding the management of tourism potential and its contribution to the development of new knowledge on alternative forms of tourism. The method used in this study is descriptive qualitative using a participant approach, where data collection uses surveys and qualitative methods. The survey was conducted by means of interviews with the community and village structures of Maringkik Island using the old method. The data is tabulated and processed then described. To evaluate the characteristics of “cultural tourism”, a survey is designed for tourism facility providers that will be formed by the community and providers. A survey was also conducted to determine the population and economic level of the community. With surveys and qualitative studies, data related to the potential for traditional and cultural tourism owned by the Maringkik people can be mapped quite comprehensively. The results of this study are that the tourism potential in Maringkik is related to two things, firstly discovering the traditions and culture of the local community, secondly, the tourism potential in Maringkik cannot be separated from the beach and the gills.

The Impact of the Formation of Three New Provinces on Papua’s Economic Performance

Currently, there have been three new autonomous regions established as a result of regional expansion in Papua Island, namely South Papua Province, Central Papua Province, and Papua Mountain Province. The formation of new provinces is expected to become a prime mover for accelerating equitable economic development in the Papua region. Therefore, it is necessary to conduct a study to analyze the impact of the formation of the province on the economic performance of Papua Island. The method used is the Final Demand Impact analysis of the Input-Output (I-O) Table. The results of this study indicate that the formation of the province has an impact on increasing the economic output of Papua Island by 37.7 percent and 69.5 percent for an increase in added value and contributing to an increase in employment of 71.1 percent or as many as 1.5 million people. The improvement in the economic performance of Papua Island, in turn, will indirectly have a positive effect on improving people's welfare and strengthening regional competitiveness and the contribution of the regional economy to the national economy. In addition, it also reduces the level of inequality in economic development nationally, which is still dominated by Java Island.

Grouping The Districts in Sumatera Region Based on Economic Development Indicators Using K-Medoids and CLARA Methods

Inequality in economic development is an economic problem that is often felt by developing countries. In Indonesia, one of the regional areas that has not yet experienced equal distribution of economic development is the regencies/cities of the Sumatera Region. This study aims to determine regional groups and compare the results of grouping with the K-Medoids and CLARA methods. The K-Medoids and CLARA methods are non-hierarchical methods that are strong against outliers. While the best selection method is done by comparing the silhouette coefficient. The results obtained in this study using the K-Medoids and CLARA methods with 2 groups being better than forming 3 groups. The K-Medoids method resulted in cluster 1 as many as 59 districts/cities and cluster 2 as many as 95 districts/cities. Meanwhile, the grouping of districts/cities using the CLARA method with 2 groups resulted in cluster 1 as many as 74 districts/cities and cluster 2 as many as 80 districts/cities. From the comparison of the two methods, the silhouette coefficient values using the K-Medoids and CLARA methods are 0.13 and 0.15 respectively. Therefore, the CLARA method with 2 groups gave better cluster results

Statistical estimation of economic development inequalities at municipality level: The case of Serbia

Statistical estimation of economic development inequalities at municipality level: The case of Serbia

Digital inequality: modernization of Kuznets curve in the digital era

Objective: to study the impact of the level of broadband Internet access on income inequality in Russian regions.Methods: econometric modeling using the method of analyzing the relationship between inequality and economic growth, developed by Simon Kuznets, for a sample of 82 Russian regions in 2010–2020.Results: the paper examines the theoretical and practical aspects of income inequality of the population. The basis of many scientific studies is the results obtained by S. Kuznets, repeatedly tested in subsequent works. It is determined that under digital economy, inequality in economic development is also manifested in the spread of broadband Internet access. However, previous studies have not answered whether the further spread of the Internet will lead to increased income inequality. The authors of the study put forward and tested the corresponding hypothesis. Based on the analysis results, the authors draw conclusions about the existence of a nonlinear relationship between economic growth and income inequality, as well as the existence of a link between the spread of broadband Internet access and the reduction of income inequality in the Russian regions. At the same time, the results show that the relationship between the development of broadband Internet access and the Gini coefficient has an inverted U-shaped curve. This relationship is a development or analogue of the Kuznets curve, in which the development of digital infrastructure becomes one of the key factors in reducing inequality.Scientific novelty: a method for analyzing the relationship between income inequality and digital development is proposed, which is based on the results of econometric modeling. A model is substantiated and constructed that characterizes the impact of broadband Internet access on income inequality in Russia.Practical significance: the study results substantiate the need to increase the level of broadband Internet connectivity as one of the indicators of reducing income inequality in the Russian regions and, thus, indicate the directions of regional policy in the field of digital infrastructure development.

Pertumbuhan dan Ketimpangan Pembangunan Ekonomi (Studi Kasus: Provinsi Aceh)

This study aims to analyze economic growth and development in the District/City of Aceh Province for the period 2012 to 2016 and identify the economic growth of the District/City in Aceh Province which has a significant influence. The data used in this study is 5-year panel data from 23 regencies/cities of Aceh Province from 2012 to 2016, while the object of this research is the development of economic development in each region, regional economic development and the factors that influence it. Based on the results of growth and the Aceh Province's inter-regional economic development in Aceh Province, it can be ascertained that 1) Inequality of economic development in Aceh Province Regency/City which is calculated using Entropy for the 2012-2016 Period shows an increase, 2) The order of Aceh Regency/City which has a high growth value minus / negative namely City. Lhokseumawe, Regency. North Aceh and the District. East Aceh, 3) economic growth and income which were analyzed using Theil Entrophy Index showed an increase every year from 2012-2016 in the City. Subulussalam, Langsa City and Sabang City, 4) Sources of economic growth in Aceh Province are partly generated from economic sectors such as agriculture sector, implementation sector, industrial sector, plantation sector, transportation sector, information, and communication sector, and 5) Based on In the test using a linear trendline, there are 7 regencies/cities out of 23 regencies/cities in Aceh Province, namely regencies. Simeulue, District, Aceh Besar, District. Southwest Aceh, Sabang City, Langsa City, Bener Meriah Regency, and Subulussalam City which deserve R2 close to 1 and are relatively strong, namely the independent variable explains the variable.

DETERMINAN KETIMPANGAN PEMBANGUNAN EKONOMI ANTARPROVINSI DI INDONESIA

This study aims to determine and understand the determinants of inequality in economic development between provinces in Indonesia. The analysis is carried out by first calculating the Williamson Index as an indicator of inequality in economic development between regions. They used economic and social variables, including the human development index, road infrastructure, and foreign investment. This research method uses a statistical panel data approach with the Fixed Effect Model (FEM) model. This study explains that the human development index partially has a significant negative effect on inequality between regions. Road infrastructure and foreign investment have a significant positive impact on inequality between regions. Simultaneously, the human development index, road infrastructure, and foreign investment significantly affect economic development inequality between regions.

MEASURING THE INTER-STRUCTURAL LOW-CARBON ECONOMIC INEQUALITIES FROM PERSPECTIVES OF INDUSTRIAL HETEROGENEITY AND SCALE ECONOMY: A CASE STUDY OF CHINA’S 29 NON-FERROUS METAL INDUSTRIES

With the rapid energy consumption increase in China’s non-ferrous metal industry (NMI), there are inequalities in energy-related CO2 emissions among the sub-sectors. In this paper, a meta-frontier decomposition analysis was proposed for decomposing inter-structural low-carbon economic development inequalities among 29 sub-sectors in China’s NMI from 2004 to 2018 into 11 components, including four new factors, i.e., energy- and output- oriented technological gaps and scale economies. In addition, an I(CI) index is constructed to measure the inter-inequalities of low-carbon economic development among NMI and decomposed from the static and dynamic perspectives, respectively. Results show that: (1) I(CI) index was in a downward trend during 2004–2010, while remained stable during 2010–2018; (2) the energy-oriented technological gap (ETG) was the key promoters to increase I(CI); (3) the potential energy intensity (PEI) was the primary inhibiting factor for I(CI); (4) the government can reduce the inter-inequalities by narrowing the technological gap and reducing potential energy intensity in the energy market.

Analysis of Economic Development Inequality in Polewali Mandar Regency of West Sulawesi Province Indonesia

This study aims to analyze the imbalance of economic development and the relation of factors influencing the level of economic development in Polewali Mandar Regency. This study uses data panels from 2015 to 2019 with the least squares panel method (PLS) and using software eviews 9 for data processing. This study uses the Williamson Index and Gini ratio as a dependent variable in describing the condition of economic development inequality that occurred in Polewali Mandar Regency. Then the variables of infrastructure, investment, labor force, DAU (general allocation of funds) and DAK (special allocation of funds) as independent variables. The results stated that the average value of Economic Development inequality based on Williamsons index in the period of 2010-2019 by 0.11. While the infrastructure variables have a negative and significant effect on the imbalance of economic development on the value of 5% with the value of 0.0273 profitability. DAU also has a negative but not significant impact on development imbalance in Polewali Mandar Regency with profitability value of 0.4287. Investment variables, DAK and labor force (labor force participation rate) have a positive effect on variables of economic development inequality in Polewali Mandar regency. We found that infrastructure and DAU should be improved by the central gogernment, because these variables can reduce the level of income inequality and economic development in Polewali Mandar Regencys.

Inequlity of Economic Development Between Districts in Bali Province

Economic development is an effort to improve people's welfare, but must be accompanied by growth and distribution of income. The objective of this research are (1) to analyze the level of inequality in economic development between districts/city in Bali Province with and without Badung Regency, (2) di draw the trend lines of economic development between districts/cities in Bali. Source of data is Bali Province Central Statistics Agency. Methof of data analysis uses the Williamson Index. The results of the research showed that (1) The inequality of economic development between districts/city in Bali in 2000-2016 was low but close to moderate, indicated by the Williamson Index average of 0.35. Inequality of economic development between districts/city in Bali for the period 2000-2004 is classified as moderate, indicated by the Williamson Index of 0.38. Badung district has a contribution to increase inequality in economic development between districts/city in Bali as indicated by an increase in the average Williamson Index between districts/city in Bali (without Badung District) of 0.18 (low), while The Williamson index between districts/city in Bali Province (with Badung District) is 0.35 (low to medium).(2) The trendline of inequality in economic development between districts/cities in Bal Province tends to decrease.

POLICY EVALUATION OF REGIONAL EXPANSION AND DETERMINATION REGIONAL BOUNDARIES IN BANTEN AND WEST JAVA PROVINCE

The regional expansion is a way to accelerate development acceleration. In addition, regional expansion is the process of dividing an existing administrative area into two or more new autonomous regions. Regional expansion in Indonesia is carried out based on the Law of the Republic of Indonesia number 9 of 2015 concerning Regional Autonomy and Regional Government as a result of the second amendment to the Law of the Republic of Indonesia Number 23 of 2014. However, in the process of regional expansion in Indonesia, there are still some problems. Therefore, this study aims to evaluate government policies in regional expansion and determine regional boundaries in the provinces of Banten and West Java based on the laws in force in Indonesia. The method used in this research is the mix method, namely quantitative and qualitative. The data used are obtained from references and interviews related to regional autonomy policies, regional governments, and the determination of regional boundaries. The results of the evaluation, there are several factors that cause regional expansion, namely religious differences, ethnic and cultural differences, inequality in economic development in an area, and the size of the area. The formation of regional boundaries is carried out through 4 stages, namely Allocation, Delimitation, Demarcation, and Administration. One very important aspect of the implementation of regional autonomy is to merge regions with the hope of strengthening the relationship between local governments and local communities. In addition, it is hoped that there will be more intensive interaction between the community and the new local government, civil society will get better rights and obligations as citizens.

Model Ketimpangan Pembangunan Ekonomi di Indonesia

The purpose of this study is to analyze the effect of economic growth on the level of development inequality between provinces in Indonesia. The research method used is multiple linear regression analysis with OLS (ordinary least squares). The results of the analysis show that the inequality of economic development between provinces in Indonesia in 2005-2019 is relatively high because every year there is a significant increase, this fact is in line with the Neoclassical theory. Economic growth, poverty rate and population have a positive effect on inequality in economic development. The policy implication is that the provincial government in Indonesia should pay attention to sectors that absorb labor as a contribution to the level of economic growth and empower small communities.

Gender inequality as a barrier to economic growth: a review of the theoretical literature

In this article, we survey the theoretical literature investigating the role of gender inequality in economic development. The vast majority of theories reviewed argue that gender inequality is a barrier to development, particularly over the long run. Among the many plausible mechanisms through which inequality between men and women affects the aggregate economy, the role of women for fertility decisions and human capital investments is particularly emphasized in the literature. Yet, we believe the body of theories could be expanded in several directions.