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Inequality of Interregional Development in Riau Indonesia; Panel Data Regression Approach

Author

Listed:
  • Muhammad Hidayat

    (Department of Economics, Faculty Economic and Business, Universitas Muhammadiyah Riau, Indonesia,)

  • Ranti Darwin

    (Department of Economics, Faculty Economic and Business, Universitas Muhammadiyah Riau, Indonesia,)

  • M. Fikry Hadi

    (Department of Economics, Faculty Economic and Business, Universitas Muhammadiyah Riau, Indonesia.)

Abstract

This study aims to analyze the trends and factors of inequality of inter-regional development in Riau Province period 2011-2016. Analyzer used in the form of Index Theil, Bonet Index, and regression of panel data with fix effect model. The analysis result with Theil and Bonet Index shows the decreasing trend of Interregional Development Inequality, and the source of inequality comes from within the development area (within) with the percentage of 58% -68%. The result of fixed effect model regression states that the variable of fiscal decentralization, government expenditure, HDI, and economic growth have negative and significant relation to inequality. While the variables of natural resource differences have a positive and statistically insignificant relationship.

Suggested Citation

  • Muhammad Hidayat & Ranti Darwin & M. Fikry Hadi, 2018. "Inequality of Interregional Development in Riau Indonesia; Panel Data Regression Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 184-189.
    • Handle: RePEc:eco:journ1:2018-05-25
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    References listed on IDEAS

    as
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    2. Muhammad Hidayat, 2014. "Inequality across districts and cities in the Riau," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(2), pages 106-118, April.
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    5. Barro, Robert J., 2008. "Inequality and Growth Revisited," Working Papers on Regional Economic Integration 11, Asian Development Bank.
    6. Daniel Halter & Manuel Oechslin & Josef Zweimüller, 2014. "Inequality and growth: the neglected time dimension," Journal of Economic Growth, Springer, vol. 19(1), pages 81-104, March.
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    9. Muhammad Hidayat, 2014. "Inequality across districts and cities in the Riau," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(2), pages 106-118.
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    Cited by:

    1. Muhammad Hidayat & Ranti Darwin & M. Fikry Hadi, 2020. "Does Energy Infrastructure Reduce Inequality Inter-regional in Riau Province, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 160-164.
    2. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2023. "The Influence of Investment, Energy Infrastructure, and Human Capital Towards Convergence of Regional Disparities in Sumatra Island, Indonesia; Using Oil and Gas Data and Without Oil and Gas," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 139-149, July.

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    More about this item

    Keywords

    Inequality Development; Data Panel Regression; Riau;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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