Research Paper
Year: 2019 | Month: December | Volume: 6 | Issue: 12 | Pages: 331-340
Analysis of Economic Development Inequality in Sumatera Utara Province
Yogi Syahputra1, Murni Daulay2, Dede Ruslan2
1Postgraduate Students, 2Postgraduate Lecturer,
Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
Corresponding Author: Yogi Syahputra
ABSTRACT
This study aims to analyze of economic development inequality in Sumatera Utara Province in the period 1993 to 2018 and identify the factors that significantly influence the inequality.
The data used by researchers are secondary data consisting of time series data from 1993 to 2018 obtained from the Central Statistics Agency (BPS) of Sumatera Utara Province.
The results of this study concluded that economic development inequality in Sumatera Utara Province as measured by the williamson index in the period 1993 to 2018 tended to fluctuate. Based on the results of data processing outputs, it can be concluded that investment has a negative and not significant effect on economic development inequality in Sumatera Utara Province. The work force has a positive and significant effect on economic development inequality in Sumatera Utara Province. The allocation of regional development assistance funds has a negative and significant effect on economic development inequality in Sumatera Utara Province. Investment, work force, allocation of regional development assistance funds together have a significant effect on economic development inequality in Sumatera Utara Province. Economic development inequality in Sumatera Utara Province can be explained by variations of the three independent variables namely investment, work force, allocation of regional development assistance funds by 80.7 percent while the remaining 19.3 percent is explained by other factors outside the model.
Key words: Investment, Work Force, Allocation of Regional Development Assistance Funds, Economic Development Inequality
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