Last modified: 2022-01-28
Abstract
The study aims to figure out the economics characteristic in the western, central, and esatern parts of Indonesia and determine to what extent the influence of income inequality, unemployment, and poverty againts economic growt. It employs a quantitative method using panel data that combines time-series data and cross-sectional dat. At the same time, the data sources are secondary data in the from of income inequality data, i.e., Gini ratio (Gini coefficients), unemployment rate, and proverty rate of 34 provinces in Indonesia from 2015 to 2019 and are collected from Statistics Indonesia and journal as the supporting sources.
Moreover, the analysis method applies multiple linear regression anlysis using Eviews 2021. The value of the f statistic is 17.89970, while the porbability value or p-value is 0.0000, which is lower than all significant levels used in the model. Thus, it can be stated that income inequality, unemployment, and proverty simultaneously influence economic growth. In the meantime, the results of partial testing (t-test) that has been carried out obtains that the p-value for the Gini ratio variable is 0.2082. if the p-value is compared with of levels of α used in the study, the Gini ratio is insignificant. Thus, Hο is accepted, and is rejected. Besides, the p-value for the open unemployment rate variable is 0.0494. If the p-value is compared with the level of α, namely 5%, the open unemployment rate is significant. Therefore, Hο has rejected, and accepted. At the same time, the p-value for the proverty variable is 0.106801. If the p-value is comapred with all levels of α used in the study, the proverty is insignificant. Thus, Hο is accepted and is rejected.
Keywords : Economic Growth, Income Inequality, Unemployment, Proverty.