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All Journal Jurnal PROFIT: Kajian Pendidikan Ekonomi dan Ilmu Ekonomi
Dwi Darma Puspita Sari
Department of Development Economics Faculty of Economics, Universitas Sriwijaya

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Pemetaan Kesenjangan Ekonomi: Analisis Data Panel dari 34 Provinsi di Indonesia Feny Marissa; Hamira Hamira; Dwi Darma Puspita Sari; Deassy Apriani
Jurnal PROFIT: Kajian Pendidikan Ekonomi dan Ilmu Ekonomi Vol. 12 No. 1 (2025): Jurnal PROFIT: Kajian Pendidikan Ekonomi dan Ilmu Ekonomi
Publisher : Pendidikan Ekonomi FKIP Universitas Sriwijaya, in partnership with Asosiasi Profesi Pendidikan Ekonomi Indonesia (ASPROPENDO)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.36706/jp.v12i1.53

Abstract

Income inequality remains a complex challenge in developing countries, including Indonesia. While it cannot be eliminated, it can be reduced to socially acceptable levels to maintain harmony in the system. This study analyzes the effect of the Human Development Index (HDI), poverty, economic growth, Regional Original Revenue (PAD), and Farmer Exchange Rate (NTP) on income inequality in Indonesia during 2000-2021. Using the panel data regression analysis technique with the Fixed Effects Model, the results show that economic growth and NTP significantly negatively affect inequality, helping to reduce it. In contrast, HDI and poverty increase inequality, while PAD has no significant effect. The intercept indicates that East Java, Central Java, and West Java have lower inequality, mainly due to the presence of growth centers and industries. This study suggests the development of new economic centers in poor regions as an effective strategy to reduce inequality in Indonesia.
Co-Authors Deassy Apriani Feny Marissa Hamira Hamira