Regional Income Inequality in Indonesia: The Role of Public and Private Investment

Q3 Economics, Econometrics and Finance

Jurnal Ekonomi Malaysia Pub Date : 2022-10-01 DOI:10.17576/jem-2022-5603-05

Ketidaksamaan Pendapatan, Serantau di Indonesia, Peranan Pelaburan, Awam dan Swasta, D. R. Hakim, Universitas Pamulang, Iin Rosini

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引用次数: 1

Abstract

This study analyzed the effect of investment on regional income inequality in Indonesia using a panel dataset on 33 provinces for the period 2006 -2021. We distinguished among three forms of investment, namely, regional public investment (RDI), private domestic investment (PDI), and foreign direct investment (FDI). By employing a dynamic panel system generalized method of moment (Sys-GMM) estimation, this study revealed that PDI exacerbated regional income inequality Even though PDI alongside FDI positive affect regional economic growth. Among other findings, school participation rate and internet access reduced regional income inequality. But average years of schooling is associated is increased regional inequality suggesting that the school completion benefited middle- and high-income groups. The regional government needs to open up greater access to secondary education and create more proper digital infrastructure in remote areas. effect between investment on income inequality. Other studies find no evidence that domestic investment affects income inequality.

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印度尼西亚的区域收入不平等:公共和私人投资的作用

本研究使用2006 -2021年期间印度尼西亚33个省的面板数据集分析了投资对区域收入不平等的影响。我们区分了三种形式的投资，即区域公共投资(RDI)、私人国内投资(PDI)和外国直接投资(FDI)。本研究采用动态面板系统广义矩估计方法(Sys-GMM)，发现尽管PDI与FDI对区域经济增长有正向影响，但PDI加剧了区域收入不平等。在其他研究结果中，入学率和互联网接入减少了地区收入不平等。但平均受教育年限与地区不平等加剧有关，这表明完成学业有利于中高收入群体。地方政府需要开放更多的中等教育机会，并在偏远地区建立更多适当的数字基础设施。投资对收入不平等的影响。其他研究没有发现国内投资影响收入不平等的证据。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Jurnal Ekonomi Malaysia Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.50

自引率

0.00%

发文量

期刊介绍： Jurnal Ekonomi Malaysia (JEM) is a Scopus indexed peer reviewed journal published by UKM Press (Penerbit UKM), Universiti Kebangsaan Malaysia. The journal publishes original research articles as well as short notes, comments and book reviews on all aspects of economics, particularly those pertaining to the developing economies. Articles are published in both English and Malay.