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Income Inequality, Poverty, and Inclusive Economic Development: Evidence from Gorontalo Province, Indonesia Masia, Israwanto; Saleh, Sri Endang; Mopangga, Herwin
Journal of International Conference Proceedings Vol 8, No 1 (2025): 2025 ICPM Malaysia Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v8i1.3946

Abstract

Income distribution (Gini ratio) plays an important role in determining the level of public welfare and the quality of inclusive economic development. High income inequality can worsen poverty conditions and hinder the creation of equitable development. This study aims to analyze the effect of income distribution on inclusive economic development in Gorontalo Province by considering poverty as an intervening variable. The method used is path analysis with secondary data from the Gorontalo Province BPS during 2011–2024. The results show that income inequality has a positive and significant effect on poverty and a negative and significant effect on inclusive economic development. Poverty also has a negative impact on inclusive economic development and serves as a significant intervening variable. These findings imply that reducing inequality and poverty is crucial in promoting sustainable inclusive economic development in Gorontalo Province.
Projection of Effectiveness, Efficiency, and Regional Independence of Gorontalo Province Rasid, Ayub Usman; Masia, Israwanto; Hasyim, Hasyim
Gorontalo Development Review Volume 8 Nomor 1 April 2025
Publisher : Universitas Gorontalo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32662/golder.v8i1.3946

Abstract

This article examines the projection of Gorontalo Province's financial performance in the context of the decentralization of the Indonesian government that has been going on since 1999. Although decentralization provides greater autonomy in the management of resources and public services, Gorontalo Province still faces significant challenges in optimizing Regional Original Revenue (PAD) and a high dependence on fund transfers from the central government. Using a quantitative approach and descriptive methods, this study analyzes secondary data from the Gorontalo Governor's Accountability Report (LKPJ) for the 2019-2023 period. The analysis was carried out using three financial ratios – effectiveness, efficiency, and regional independence – which were then projected for the 2024-2033 period using linear trend analysis. The projection results show interesting dynamics: a decrease in the effectiveness ratio from 99.50% to 39.71%, an increase in efficiency from the status of "Less Efficient" (94.71%) to "Efficient" (78.11%), and the strengthening of regional independence from the category of "Low" (41.68%) to "Medium" (66.60%). These findings indicate serious challenges in achieving revenue targets, but also show the potential for improvement in expenditure management and regional independence. This research makes an important contribution to the long-term understanding of regional financial performance and suggests the need for further research that takes into account external factors such as national policy changes, global economic dynamics, and potential economic shocks.