Jurnal Ekonomi Pembangunan
Vol. 20 No. 2 (2022): Jurnal Ekonomi Pembangunan

The Effect of Economic Growth, Fiscal Decentralization, Fiscal Stress, and Economic Openness on Regional Inequality

Hanny Tri Putri (Department of Economics, Faculty of Economics, Universitas Sriwijaya)
Didik Susetyo (Department of Economics, Faculty of Economics, Universitas Sriwijaya)
Feny Marissa (Department of Economics, Faculty of Economics, Universitas Sriwijaya)
Sukanto Sukanto (Department of Economics, Faculty of Economics, Universitas Sriwijaya)



Article Info

Publish Date
15 Jan 2023

Abstract

Regional inequality is a phenomenon that occurs universally in all countries, regardless of their size and level of development. Regional inequality is basically caused by differences in the content of natural resources and demographic conditions in each region This study aims to determine the effect of economic growth, the degree of fiscal decentralization, fiscal stress, and economic openness on regional inequality between provinces in Sumatra during the 2010-2020 period. The method used in this study is the panel data regression analysis method using the Random Effect Model. The results showed that simultaneously economic growth, degree of fiscal decentralization, fiscal stress and economic openness influenced regional inequality. Partially, economic growth and the degree of fiscal decentralization have a negative but not significant effect on regional inequality, while fiscal stress has a positive but not significant effect on regional inequality, and economic openness has a positive and significant effect on regional inequality. The implication of this research is that local governments need to adopt policies to impose restrictions on exports and imports, such as barriers in the form of quotas or tariffs.

Copyrights © 2022






Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Pembangunan is a peer-reviewed journal that provides a forum for scientific works pertaining to Development Economics. Published twice in a year (June and December). This Journal has p-ISSN 1829-5843, and e-ISSN 2685-0788. This journal was first published since June 2003 by the ...