Determinants of Development Inequality in Eastern Indonesia

Endang Setya Lukita, Muhammad Arif

Abstract


The problem of inequality in regional development is a historical problem faced by every country. One of the efforts to reduce disparities is accelerating development in underdeveloped areas. This study aims to explain the condition of development inequality in eastern Indonesia by using five independent variables, namely the construction cost index, investment, average length of schooling, regional original income, and forest land cover area. This research method uses Williamson index analysis and panel data regression. The random Effect Model (REM) is the most appropriate approach to explain the influence of variables in this study. The results of the index study show that Williamson for eastern Indonesia has a value of 0.49 which means moderate inequality. The results of the REM analysis show that investment, local revenue, and forest land cover have a positive and significant effect on development inequality. The average length of schooling has a negative and significant effect on developmental inequality.


Keywords


Williamson index, investment, the average length of schooling, construction cost index, locally-generated revenue, forest land cover area

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References


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