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Journal : Ecces: Economics, Social, and Development Studies

Inequality; Empirical Study on Sulawesi Island Development Sri Indriyani S. Dai; Husain Gani
EcceS (Economics, Social, and Development Studies) Vol 9 No 2 (2022): December
Publisher : Fakultas Ekonomi dan Bisnis Islam UIN Alauddin Makassar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24252/ecc.v9i2.29708

Abstract

This study aims to analyze and determine how big the influence of economic growth, population growth, investment growth and the human development index on changes in income inequality in Sulawesi. The novelty of this study is to explore the interrelation of population, investment and human development index (HDI) variables on inequality that occurs in Sulawesi as a whole.The data used in this study is secondary data with the type of panel data, a combination of time series and cross sections from 2010-2020 and 6 provinces in Sulawesi. The method used is the Panel Vector Error Correction Model (PVECM). The results of this study indicate that (1) Changes in Economic Growth have no significant positive effect on changes in Income Inequality, meaning that any increase in changes in Economic Growth can increase changes in Income Inequality in Sulawesi. (2) changes in population have an insignificant negative effect on changes in income inequality, meaning that any increase in population changes can reduce changes in income inequality in Sulawesi. (3) changes in investment growth have a negative and significant effect on changes in income inequality, meaning that any increase in investment changes can reduce changes in income inequality in Sulawesi. (4) changes in HDI have a positive and significant effect on changes in income inequality, meaning that every increase in HDI changes can increase changes in Income Inequality in Sulawesi. (5) Dummy changes have a negative and significant effect on changes in income inequality, meaning that every increase in Dummy changes can reduce changes in Income Inequality in Sulawesi. The implication of this research is that the government needs to increase economic growth and control population growth followed by reducing income inequality, especially in the long term, the government is also expected to increase human resources by creating jobs, decent education and health in order to reduce the problem of inequality in the region. Local governments are expected to be able to formulate investment policies that are more inclusive and oriented towards reducing inequality in Sulawesi so as to create more equitable welfare.
Understanding the Dynamics of Unemployment and Poverty in the Tomini Bay Area Dai, Sri Indriyani S.; Hasan, Sherina; Setiawan, Widy
EcceS: Economics, Social, and Development Studies Vol 10 No 2 (2023): December
Publisher : Economics Department, Faculty of Economic and Islamic Business, Universitas Islam Negeri Alauddin Makassar, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24252/ecc.v10i2.41137

Abstract

This study aims to analyze the effect of education level, gini ratio and labor force participation rate on unemployment, as well as the effect of unemployment on poverty in the Tomini Bay region. The data used in the study is secondary data in the form of 10 regencies/cities in the Tomini Bay area, for the 2018-2022 period, sourced from the Indonesian Central Bureau of Statistics. The novelty of this study is trying to trace the relationship between educational and economic aspects to the phenomenon of poverty in the Tomini Bay Region, as a regional economic power. The future impact of this study is the mapping of the actual condition of poverty and the availability of more evidence-based policy recommendations in reducing unemployment and poverty in the Tomini Bay Area. This study used descriptive quantitative methods. With an approach (Simultaneous equation regression model) using the Indirect Least Square (ILS) regression technique with Fixed Effect Model (FEM). The results of this study show that the level of education and the labor force participation rate have a negative and significant effect on unemployment. In contrast to the Gini ratio which actually has a positive and significant effect on unemployment. On the other hand, unemployment shows a positive and significant influence on poverty. The implication of the research is the need for a truly massive policy to strengthen the education dimension, to accelerate the increase in human capital and the importance of a sustainable program to increase employment opportunities from the government so as to reduce unemployment and poverty.