Journal of Management, Accounting, General Finance and International Economic Issues (MARGINAL)
Vol. 4 No. 1 (2024): DECEMBER

Measuring Economic Contribution and Per Capita Income Disparities in Indonesia Using the Theil Index

Ammar, Zul (Unknown)
Bachtiar, Nasri (Unknown)



Article Info

Publish Date
25 Dec 2024

Abstract

This study aims to analyze economic contribution and per capita income disparities among provinces in Indonesia using the Theil Index method. The results indicate that the total economic contribution disparity among provinces has a value of 2.2716, with the intra-island disparity (Tintra) component accounting for 1.4919 and the inter-island disparity (Tinter) component accounting for 1.2237. Meanwhile, the analysis of per capita income disparity shows a Total Theil Index of 0.8520, with the Tintra component accounting for 0.8384 and the Tinter component accounting for 0.0136. These findings highlight that intra-island disparities play a more dominant role than inter-island disparities. Therefore, policies focused on equitable infrastructure development in remote areas and the acceleration of development in eastern Indonesia are essential to reduce these disparities. This study also recommends that further research should be conducted to explore the factors contributing to these disparities.

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Journal Info

Abbrev

MARGINAL

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Social Sciences

Description

Journal of Management, Accounting, General Finance and International Economic Issues (MARGINAL) provides a scientific discourse about accounting, business, management, and economic issues both practically and conceptually. The published articles at this journal cover various topics from the result ...