Analysis and Prospect of Economic Growth and Income Inequality in West Sumatra Province

Abstract

This paper is aimed at analyzing and determining the prospect of economic growth and income inequality by looking at panel data starting from 2011 to 2015 in all regencies and cities in West Sumatera. The data analysis used was simultaneous equation with ILS (Indirect Least Square) method. The results show that labor and Human Development Index (HDI) are the factors that affect Economic Growth, whereas labor, HDI and agricultural sector development are the factors that affect income inequality in West Sumatera.