ANALYSIS OF INCOME INEQUALITY BETWEEN REGENCIES AND CITIES IN BENGKULU PROVINCE
Anggara Pratama Putra (a*)

Faculty of Economics and Business, University of Airlangga, Surabaya, Indonesia

Abstract

Development in the economy is not always evenly distributed, income inequality between regions is one indicator of a very important problem. Basically, some regions experience rapid economic growth but some other regions experience slow economic growth. This study aims to determine and analyze how income inequality between regencies and cities in Bengkulu Province and how the influence of GRDP, Population and HDI variables on income inequality between regencies and cities in Bengkulu Province. Factors affecting income inequality in this study include GRDP, Population and HDI using panel data regression method with the help of Eviews 12 software. Panel data is a combination of cross section data and time series data. The most appropriate model in this study is to use the random effect method after the Chow test, Hausman test and Langrange Multiplier test. The results showed that income inequality among regencies and cities in Bengkulu Province is in the low category. Inequality that occurs is caused by differences in natural resources, human resources, and also differences in the allocation of funds used for development in each regency and city in Bengkulu Province. The GRDP variable has a negative and significant effect on income inequality between regencies and cities in Bengkulu Province, while the Population variable has a positive and significant effect on income inequality between regencies and cities in Bengkulu Province and the HDI variable has a negative and significant effect on income inequality between regencies and cities in Bengkulu Province.

Keywords: Income Inequality, GRDP, Population, HDI

Topic: Development economics