Jambura Equilibrium Journal
Vol 6, No 2 (2024): Vol 6. No 2. July 2024

Analysis of Theil Comparative Decomposition Index to Measure Regional Inequality Due to Industrialization Residues

Susanto, Deni Aditya (Unknown)
Wijaya, Oki (Unknown)
Ardiana, Wiwik (Unknown)
Tantiana, Tantiana (Unknown)



Article Info

Publish Date
03 Jul 2024

Abstract

The Industrial sector in Kendal County, Indonesia, is one of the national strategic projects aimed at promoting investment accumulation and job creation. Unfortunately, the rapid development of this Industrial sector has resulted in income inequality compared to other sectors. This research aims to examine and measure the contribution of the Industrial sector in Kendal County to aggregate inequality. Methodologically, this research uses a quantitative descriptive approach, which involves indexing inequality to reveal economic phenomena. The inequality indices include the Gini ratio index, the Williamson index, and the Theil index. In Kendal County, inequality is at a moderate to high level, as evidenced by a Gini ratio index of 0.411 and a Williamson index of 0.775. On the other hand, the Theil index reaches 0.519, placing it in between the Gini ratio and the Williamson index. The high inequality in Kendal County is attributed to the Industrial sector, accounting for 41.19%. The Industrial sector significantly contributes to the widening of inequality in Kendal County. This is due to the Industrial sector attracting production input factors such as investments, resources, human capital, monetary conditions, and technological innovation. However, the trickle-down effect does not occur between the Industrial sector and other economic sectors such as agriculture, food and beverages, trade, services, and accommodation.

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Journal Info

Abbrev

equij

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

The aims fo this journal is to provide a venue for academicians, researchers and practitioners for publishing the original research articles or reviews articles. The scope of the articles published in this journal deal with a broad range of topics, including Ecocnomic Development, Regional ...