Last modified: 2022-03-24
Abstract
This research is aimed to determine the effect of economic growth, investmen, and HDI on income inequality. The data used in this research was secondary data in 6 provinces in Sulawesi, for the period 2010-2019, sourced from Statistica Indonesia. The method used was multiple regression analysis using panel data.
The results of the analysis show that Economic Growth has a negative and significant effect on income inequality in Sulawesi. The result of this research prove that economic growth has a dirrect effect on income inequality. Economic growth is one of the description of development in various economic sectors with the aim of increasing people’s income and overcoming level economic inequality. Investment has a negative but insignificant effect on income inequality in Sulawesi. Increased investment does not have a dirrect effect on income inequality in Sulawesi. Investmen in Sulawesi is only centered on certain regions, and there is no equal distribution of development in each region in Sulawesi so that only certeain regions can develop their economy. HDI has a dirrect on income inequality in Sulawesi. This happen because the existing HDI elements only develop radiply in areas around the city, while areas far from urban areas find it difficult to obtain facilities such as proper health and education.
Keywords: Economic Growth, HDI, Investment, Inequality