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Measuring Economic Contribution and Per Capita Income Disparities in Indonesia Using the Theil Index Zul Ammar; Nasri Bachtiar
JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES Vol. 4 No. 1 (2024): DECEMBER
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/marginal.v4i1.1529

Abstract

This study aims to analyze economic contribution and per capita income disparities among provinces in Indonesia using the Theil Index method. The results indicate that the total economic contribution disparity among provinces has a value of 2.2716, with the intra-island disparity (Tintra) component accounting for 1.4919 and the inter-island disparity (Tinter) component accounting for 1.2237. Meanwhile, the analysis of per capita income disparity shows a Total Theil Index of 0.8520, with the Tintra component accounting for 0.8384 and the Tinter component accounting for 0.0136. These findings highlight that intra-island disparities play a more dominant role than inter-island disparities. Therefore, policies focused on equitable infrastructure development in remote areas and the acceleration of development in eastern Indonesia are essential to reduce these disparities. This study also recommends that further research should be conducted to explore the factors contributing to these disparities.
Dynamics of Intergenerational Poverty Transfer: The Impact of Poverty Levels, Education Levels, and Minimum Wages in West Sumatra Meriska Suwatri; Nasri Bachtiar
CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE Vol. 4 No. 1 (2024): OCTOBER
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/cashflow.v4i1.1539

Abstract

Intergenerational poverty is a complex issue involving various factors, including education, unemployment, and minimum wages.  This study analyzes the impact of education levels, unemployment rates, and minimum wages on poverty rates in West Sumatra using multiple linear regression models. Secondary data from the Central Statistics Agency (BPS) and the Ministry of Finance during the period of 2021-2023 were used to analyze 19 districts/cities in West Sumatra. The results indicate that education levels and minimum wages significantly affect the reduction of poverty rates, while unemployment rates contribute positively to increasing poverty. This study provides policy recommendations to enhance the quality of education and adjust minimum wages to break the intergenerational poverty cycle in the region.
Analysis of Inclusive Economic Growth in West Sumatra Dicky Rustam; Nasri Bachtiar
CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE Vol. 4 No. 1 (2024): OCTOBER
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/cashflow.v4i1.1559

Abstract

This study aims to analyze the effect of inclusive economic growth in the regencies and cities of West Sumatra. The research utilizes panel data comprising a 5-year time series and a cross-section of 19 regencies and cities, resulting in a total of 95 observations. The dependent variable in this study is inclusive economic growth, while the independent variables include education, health, and government spending. The analytical method employed is panel data regression analysis. Based on the Chow test, Hausman test, and Lagrange Multiplier test, the best model selected is the Random Effect Model (REM). The classical assumption tests indicate that the data satisfy the requirements for normality and multicollinearity. The results of the panel data regression analysis reveal that education and health have a significant negative effect on inclusive economic growth, whereas government spending has a significant positive effect. These findings suggest that the government should focus on improving the quality of education and healthcare services and optimizing government spending to achieve inclusive economic growth. Such efforts should also aim to reduce poverty and income inequality.