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

Evi Syuriani Harahap (Universitas Negeri Medan)
Imamul Khaira (Universitas Negeri Medan)



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 ...