AN ANALYSIS OF REGIONAL INEQUALITY AND THE AFFECTING FACTORS IN SULAWESI ISLAND
Keywords:
Poverty, Human Development Index, Economic Growth, Regional InequalityAbstract
The study aims to determine to what extent the level of Regional Inequality that occurs among Provinces in Sulawesi Island as well as to analyse the effect of Poverty, Human Development Index, and Economics Growth om Regional Inequality among Provinces un Sulawesi Island. Data used in this study are collected from Statistics Indonesia of six Provinces in Sulawesi Island. In addition, this study employs multiple regression analysis techniques with Random Effect Model aproach The resulr of the analysis discloses that the level of regional inequality that occurs among Provinces in Sulawesi Island is 0,45 or is included in moderate regional inequality. In detail, Poverty has a negatif and insignicant effect on regional inequality. In addition, the human development index has a positive and significant effect on regional inequality. Meanwhile, the economic growth has a positive and significant effect on regional inequality. It can be concluded that an increase in poverty by one percent will reduce the level of regional inequality by 0,022775 on the Williamson Index scale. In the meantime, in increase in the human development index by one percent will increase the level of regional inequality by 0,029644 on the Williamson Index scale, while an increase in economic growth by the one percent will increase the level of regional inequality by 0,011065 on the Williamson Index scale.
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