Regional income inequality in Indonesia: the role of public and private investment

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 i...

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Main Authors: Dani Rahman Hakim, Iin Rosini
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2022
Online Access:http://journalarticle.ukm.my/21385/
http://journalarticle.ukm.my/21385/1/Regional%20Income%20Inequality%20in%20Indonesia%20The%20Role%20of%20Public%20and%20Private.pdf
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author Dani Rahman Hakim,
Iin Rosini,
author_facet Dani Rahman Hakim,
Iin Rosini,
author_sort Dani Rahman Hakim,
building UKM Institutional Repository
collection Online Access
description 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 is 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.
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spelling oai:generic.eprints.org:213852023-03-27T00:32:01Z http://journalarticle.ukm.my/21385/ Regional income inequality in Indonesia: the role of public and private investment Dani Rahman Hakim, Iin Rosini, 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 is 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. Penerbit Universiti Kebangsaan Malaysia 2022 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/21385/1/Regional%20Income%20Inequality%20in%20Indonesia%20The%20Role%20of%20Public%20and%20Private.pdf Dani Rahman Hakim, and Iin Rosini, (2022) Regional income inequality in Indonesia: the role of public and private investment. Jurnal Ekonomi Malaysia, 56 (3). pp. 87-101. ISSN 0127-1962 https://ejournals.ukm.my/jem/
spellingShingle Dani Rahman Hakim,
Iin Rosini,
Regional income inequality in Indonesia: the role of public and private investment
title Regional income inequality in Indonesia: the role of public and private investment
title_full Regional income inequality in Indonesia: the role of public and private investment
title_fullStr Regional income inequality in Indonesia: the role of public and private investment
title_full_unstemmed Regional income inequality in Indonesia: the role of public and private investment
title_short Regional income inequality in Indonesia: the role of public and private investment
title_sort regional income inequality in indonesia: the role of public and private investment
url http://journalarticle.ukm.my/21385/
http://journalarticle.ukm.my/21385/
http://journalarticle.ukm.my/21385/1/Regional%20Income%20Inequality%20in%20Indonesia%20The%20Role%20of%20Public%20and%20Private.pdf