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Journal : International Journal of Business, Economics, and Social Development

Investigating the Income Inequality in Indonesia: An Application of Autoregressive Distributed Lag Approach Zulfa Nazli; Abd. Jamal; Muhammad Nasir
International Journal of Business, Economics, and Social Development Vol 2, No 4 (2021)
Publisher : Research Collaboration Community (RCC)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46336/ijbesd.v2i4.162

Abstract

This study investigates the effect of economic growth, urban population, unemployment, and human capital on income inequality in Indonesia. Annual data collected from World Development Indicator (WDI) is used from 1984 to 2019. The analytical method of this research is Autoregressive distributed lag (ARDL) to examine the short and long-term relationships. The results show that economic growth positively and significantly affects income inequality in the short and long term. The urban population variable has a significant negative effect in the short term but not in the long term. The unemployment variable has a significant positive effect in the long run. Finally, human capital negatively affects the short term while not in the long term. Based on these findings, it is recommended that the government stabilize inequality by increasing progressive taxes, creating jobs, providing soft skills training beyond formal education, and socializing the concept of commuter work.
Typological Analysis and Development of District Area Based on Potential Sectors in Pasaman Regency, West Sumatera Province, Indonesia Deop Darius; Abd Jamal; Putri Bintusy Syathi
International Journal of Business, Economics, and Social Development Vol 2, No 4 (2021)
Publisher : Research Collaboration Community (RCC)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46336/ijbesd.v2i4.163

Abstract

The decentralization of Indonesia allowed the development in the regency level to improve to the highest level. However, the impact can only be maximized by utilizing the potential economy embodied in the regent. This study investigates the development of the Pasaman Regency by analyzing the potential sector and the stage development of the sector. Therefore, this study uses mixed research methods with explorative approaches and uses Contribution Sectors Analysis, Location Quotient Analysis model, Shift Share Analysis model, and Klassen typological analysis model, The data used is the Gross Regional Domestic Product (GRDP) of Pasaman Regency and West Sumatra Province in the period 2010 until 2019 and data on the production of the Pasaman Regency base sector in each district in 2015-2019. The result showed that the agricultural, fisheries, and forestry sectors have the largest contribution to the GRDP of Pasaman Regency which is 55.51%, then the sector that belongs to the base sector with the value of LQ>1, namely the agricultural, fisheries, and forestry sectors. The sectors that experienced a net change or shift and had a positive value and the highest level of excellence were the agricultural, fisheries, and forestry sectors of 10,718,410,000. Klassen Typology Analysis is based on the base sector, namely the agricultural, fisheries, and forestry sectors with the largest contribution to the fisheries sector so that the grouping of regions using fisheries data with the results of Panti and South Rao Districts is classified as advanced areas and Lubuk Sikaping and Mapat Tunggul Selatan districts are classified as lagging areas. There is a shift in territory caused by land transfer, changes in the profession, and accessibility. The development of district areas in Pasaman Regency through the fishery sector in the form of fish cultivation, fish feed factories, and fish processing industries is expected to improve the welfare of the community, especially sub-districts that are not classified as developed areas so that the trickle-down effect and the realization of equitable distribution
Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, Indonesia Mirza Zuhri; Abd. Jamal; Putri Bintusy Syathi
International Journal of Business, Economics, and Social Development Vol 3, No 2 (2022)
Publisher : Research Collaboration Community (RCC)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46336/ijbesd.v3i2.278

Abstract

Implementing the Regional Revenue and Expenditure Budget (APBD) policy and at the same time reducing income disparity is a tangible manifestation and success of local governments to keep poverty level low. This study focuses on the analyzing short-term and long-term effects of variables government expenditure realization and income disparity toward poverty in Aceh Province, Indonesia during 2010-2019 period using Auto Regressive Distributed Lag (ARDL) approach. It is found that both independent variables have no significant effect on short term but have significant effect on long term. Government expenditure realization is found significant at error level 1% while income disparity is found significant at error level 5% toward poverty in long term. Also both government expenditure realization and income disparity is found to have positive effect toward poverty in long term. Based on these findings it is hoped the policy maker will able to formulate a strategic plan to reduce poverty rate in Aceh Province, Indonesia.