Jurnal Ekonomi Malaysia
56 (3) 2022 87 – 101
Faculty of Economics and Business
Universitas Pamulang
Jl. Surya Kencana No.1, Pamulang Bar.,
Kec. Pamulang, Kota Tangerang Selatan, Banten 15417, INDONESIA.
Faculty of Economics and Business
Universitas Pamulang
Jl. Surya Kencana No.1, Pamulang Bar.,
Kec. Pamulang, Kota Tangerang Selatan, Banten 15417, INDONESIA.
Abstract
This study analyzed the effect of investment on regional income inequality in Indonesia using a panel dataset on 33 provinces for the period 2006 -2021. We distinguished among three forms of investment, namely, regional public investment (RDI), private domestic investment (PDI), and foreign direct investment (FDI). By employing a dynamic panel system generalized method of moment (Sys-GMM) estimation, this study revealed that PDI exacerbated regional income inequality. Even though PDI alongside FDI positive affect regional economic growth. Among other findings, school participation rate and internet access reduced regional income inequality. But average years of schooling is associated with increased regional inequality suggesting that the school completion benefited middle- and high-income groups. The regional government needs to open up greater access to secondary education and create more proper digital infrastructure in remote areas.
Keywords
JEL Codes
Similar Articles
- Human Capital, Intrinsic Motivation and Poverty of Elderly in Later Life
- Predictors of Investment in Risky Assets among Malaysian Families
- Do Cost of Training, Education Level and R&D Investment Matter towards Influencing Labour Productivity?
Bibliography
@article{dani2022regional,
title={Regional Income Inequality in Indonesia: The Role of Public and Private Investment},
author={Hakim, Dani Rahman and Rosini, Iin},
journal={Jurnal Ekonomi Malaysia},
volume={56},
number={3},
pages={87—101},
}
Receive updates when new articles are published.