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All Journal JIET (Jurnal Ilmu Ekonomi Terapan)
Subekti, Miftachul Jannah Meilina
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The Influence of Economic Complexity Index on Income Inequality in G20 Forum Countries Subekti, Miftachul Jannah Meilina; Sari, Dyah Wulan
Jurnal Ilmu Ekonomi Terapan Vol. 9 No. 1 (2024)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v9i1.57677

Abstract

This research examines the influence of the economic complexity index, GDP per capita, gross higher education participation ratio, government spending on education, and fertility rates on income inequality in G20 Forum member countries from 2010 to 2019. The dynamic panel data regression method with the two-step System Generalized Method of Moments (SYS-GMM) estimation technique is used to analyze the data in this study. The findings reveal that the economic complexity index, GDP per capita squared, government spending on education, and fertility levels have a negative and significant effect on income inequality. Meanwhile, GDP per capita and gross enrollment rates in tertiary education have a significant positive effect on income inequality. This study shows that the economic complexity index and the quality of human resources can reduce income inequality. Therefore, policies that focus on improving the quality of human resources need to be considered to encourage innovation, increase GDP per capita, and ultimately reduce income inequality.
Co-Authors Sari, Dyah Wulan