Outline Journal of Economic Studies
Vol. 4 No. 2: June-September 2025

Economic Growth and Income Inequality in Indonesia: A Systematic Review and Meta-Analysis of Two Decades of Research

Harahap, Evi Syuriani (Unknown)
Imamul Khaira (Unknown)



Article Info

Publish Date
17 Jun 2025

Abstract

The relationship between economic growth and income inequality is a central policy challenge in Indonesia. This article presents a systematic review and qualitative meta-analysis of 21 empirical studies (2007-2025) examining this nexus at national and sub-national levels. The analysis reveals a lack of consensus on the direction of causality, with different studies supporting conflicting or insignificant relationships. Similarly, the validity of the Kuznets Curve hypothesis is found to be context-dependent, holding true in some provinces but not others. The review also identifies crucial mediating factors, including financial inclusion, education, and governance, which significantly influence the growth-inequality dynamic. Overall, the findings underscore the complexity of this relationship, calling for a policy shift away from a purely growth-centric paradigm towards more inclusive and regionally-tailored development strategies to ensure equitable outcomes.

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Journal Info

Abbrev

OJES

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Outline Journal of Economic Studies is published by Outline Publishers. The journal is published twice a year in March and September. The editorial accepts general articles covering the economy both nationally and internationally where no other media has ever ...