Analysis of Regional Disparities in Indonesia
Keywords:
Kawasan Timur Indonesia, Kesenjangan, Investasi, TIKAbstract
This study aims to assess regional inequality in Eastern Indonesia and analyze the impact of investment and advancements in information and communication technology on this inequality using the Williamson index and panel data regression techniques. The findings indicate that most provinces in Eastern Indonesia experienced high levels of inequality from 2017 to 2021. Specifically, seven provinces remained in the same inequality category throughout this period: Gorontalo in the low category, North Sulawesi in the medium category, and Central Sulawesi, East Nusa Tenggara, West Nusa Tenggara, West Papua, and Papua in the high category. Meanwhile, six other provinces—Maluku, North Maluku, Bali, West Sulawesi, South Sulawesi, and Southeast Sulawesi—experienced category changes during this time. The analysis further reveals that investment is positively correlated with regional inequality and has a significant impact on it. These results suggest that while investment can drive economic growth, it may also exacerbate inequality, particularly in regions already facing significant disparities. This study highlights the need for policies that balance economic development with equitable distribution to reduce regional disparities in Eastern Indonesia.Downloads
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