Analysis of the effect of international trade openness on inequality between districts/cities in Indonesia's provinces
This study aims to determine the impact of international trade openness on regional inequality in Indonesia's provinces by using the concept of economic geography. Other factors such as geographic accessibility, labor share in the manufacturing sector, population, and government expenditure are...
Main Authors: | , |
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Format: | Article |
Language: | English |
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Indonesian Institute for Counseling, Education and Therapy (IICET)
2023-03-01
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Series: | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
Subjects: | |
Online Access: | https://jurnal.iicet.org/index.php/jppi/article/view/1761 |
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author | Rahmi Fadhillah Zamroni Zamroni |
author_facet | Rahmi Fadhillah Zamroni Zamroni |
author_sort | Rahmi Fadhillah |
collection | DOAJ |
description | This study aims to determine the impact of international trade openness on regional inequality in Indonesia's provinces by using the concept of economic geography. Other factors such as geographic accessibility, labor share in the manufacturing sector, population, and government expenditure are also estimated. This study uses panel econometric analysis. The data used from 33 provinces in Indonesia from 2003-to 2018 was obtained from Statistic Indonesia (BPS). The result shows that international trade openness has a positive effect on increasing inequality between regions. However, openness to international trade hurts increasing inequality between regions if it is supported by geographic accessibility. The economic dispersion causes this due to cost efficiency and competitive forces. In addition, the share of labor in the manufacturing sector has no effect. However, the population and the government expenditure have a positive and significant effect on regional inequality. Positive exports tend to reduce regional inequality. Each province's exports and imports also affect this result. |
first_indexed | 2024-03-12T17:28:13Z |
format | Article |
id | doaj.art-18d4b8376ca64d7ea38bfb31ed78855b |
institution | Directory Open Access Journal |
issn | 2477-8524 2502-8103 |
language | English |
last_indexed | 2024-03-12T17:28:13Z |
publishDate | 2023-03-01 |
publisher | Indonesian Institute for Counseling, Education and Therapy (IICET) |
record_format | Article |
series | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
spelling | doaj.art-18d4b8376ca64d7ea38bfb31ed78855b2023-08-05T04:58:12ZengIndonesian Institute for Counseling, Education and Therapy (IICET)JPPI (Jurnal Penelitian Pendidikan Indonesia)2477-85242502-81032023-03-019153053410.29210/0202317611395Analysis of the effect of international trade openness on inequality between districts/cities in Indonesia's provincesRahmi Fadhillah0Zamroni Zamroni1Universitas Negeri YogyakartaUniversitas Negeri YogyakartaThis study aims to determine the impact of international trade openness on regional inequality in Indonesia's provinces by using the concept of economic geography. Other factors such as geographic accessibility, labor share in the manufacturing sector, population, and government expenditure are also estimated. This study uses panel econometric analysis. The data used from 33 provinces in Indonesia from 2003-to 2018 was obtained from Statistic Indonesia (BPS). The result shows that international trade openness has a positive effect on increasing inequality between regions. However, openness to international trade hurts increasing inequality between regions if it is supported by geographic accessibility. The economic dispersion causes this due to cost efficiency and competitive forces. In addition, the share of labor in the manufacturing sector has no effect. However, the population and the government expenditure have a positive and significant effect on regional inequality. Positive exports tend to reduce regional inequality. Each province's exports and imports also affect this result.https://jurnal.iicet.org/index.php/jppi/article/view/1761regional inequality, the openness of international trade |
spellingShingle | Rahmi Fadhillah Zamroni Zamroni Analysis of the effect of international trade openness on inequality between districts/cities in Indonesia's provinces JPPI (Jurnal Penelitian Pendidikan Indonesia) regional inequality, the openness of international trade |
title | Analysis of the effect of international trade openness on inequality between districts/cities in Indonesia's provinces |
title_full | Analysis of the effect of international trade openness on inequality between districts/cities in Indonesia's provinces |
title_fullStr | Analysis of the effect of international trade openness on inequality between districts/cities in Indonesia's provinces |
title_full_unstemmed | Analysis of the effect of international trade openness on inequality between districts/cities in Indonesia's provinces |
title_short | Analysis of the effect of international trade openness on inequality between districts/cities in Indonesia's provinces |
title_sort | analysis of the effect of international trade openness on inequality between districts cities in indonesia s provinces |
topic | regional inequality, the openness of international trade |
url | https://jurnal.iicet.org/index.php/jppi/article/view/1761 |
work_keys_str_mv | AT rahmifadhillah analysisoftheeffectofinternationaltradeopennessoninequalitybetweendistrictscitiesinindonesiasprovinces AT zamronizamroni analysisoftheeffectofinternationaltradeopennessoninequalitybetweendistrictscitiesinindonesiasprovinces |