Jurnal Ekonomika Dan Bisnis
Vol. 5 No. 3 (2025): Mei-Juni

Analysis of the Effect of Investment, Agglomeration, and Human Development Index on Regional Inequality in Eastern Indonesia 2019-2023

Aditya, Dhea Nerizza (Unknown)
Suparta, I Wayan (Unknown)
Taher, Arivina Ratih Yulihar (Unknown)



Article Info

Publish Date
31 May 2025

Abstract

This study aims to analyze the effect of Domestic Investment (PMDN), economic agglomeration, and Human Development Index (HDI) on regional inequality in 12 eastern Indonesian provinces during the 2019-2023 period. Regional inequality is measured using the Williamson Index, which reflects the level of economic inequality between regions. The analysis method used is panel data regression with the Fixed Effect Model (FEM) approach. The results show that FDI and agglomeration have a positive and significant influence on regional inequality, meaning that increased investment and concentration of economic activity can actually widen the gap if not balanced with equalization policies. Meanwhile, HDI has a negative and significant effect, indicating that improving people's quality of life can reduce regional inequality. The model has a coefficient of determination of 94.29%, which indicates that the three independent variables make a large contribution in explaining the variation in inter-regional inequality. These findings provide an important basis for the government to formulate more inclusive and equitable development policies in eastern Indonesi

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Journal Info

Abbrev

jebs

Publisher

Subject

Economics, Econometrics & Finance

Description

JEBS : Jurnal Ekonomika Dan Bisnis Merupakan Jurnal Penelitian dan Kajian Ilmiah yang diterbitkan CV.ITTC - INDONESIA dan dikelola langsung oleh Webinar.Gratis dan Even. Penyunting menerima kiriman naskah hasil kajian dan penelitian untuk bidang ekonomi ,bisnis, manajemen, akuntansi, auditing, ...