Jurnal Perencanaan Pembangunan
Vol. 1 No. 3 (2017): December 2017

Socio-Political And Economic Determinants Of Income Inequality In Indonesia

Ichsan Zulkarnaen (Ministry of National Development Planning)



Article Info

Publish Date
11 Dec 2017

Abstract

Income inequality in Indonesia has rapidly enlarged in recent years. This paper aims to examine the causes of highly persistent income inequality in Indonesia. Incontrast to other previous studies that investigated income inequality focusing only on economic factors, this paper also looks at social and political elements. Using Ordinary Least Square (OLS) method, I found that democracy has no significant impact on income inequality. In addition, the study found a significant relationship between government spending and income inequality. In addition, I also found evidence that foreign direct investment (FDI) flows have an impact to improve income inequality in Indonesia. There are several relevant policy conclusions that can be drawn from this study.

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Journal Info

Abbrev

jpp

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Energy Environmental Science Social Sciences

Description

JPP will periodically present papers related to development planning and policy in Indonesia, linking academic and scientific knowledge to public policy. JPP takes a position as one of the bridging knowledge to policy tools. The subjects are each development processes, from the planning, ...