Infrastructure and inequality: An empirical evidence from Indonesia
This research is an attempt to study the empirical relationship between infrastructure and income inequality in Indonesia. It uses regression analysis with panel data set covering 32 provinces in the period of 2007–2013 in order to estimate whether the infrastructure has positive or negative effect...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2017-03-01
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| Series: | Economic Journal of Emerging Markets |
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| Online Access: | http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/7139 |
| _version_ | 1798001764089200640 |
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| author | Amien Makmuri |
| author_facet | Amien Makmuri |
| author_sort | Amien Makmuri |
| collection | DOAJ |
| description |
This research is an attempt to study the empirical relationship between infrastructure and income inequality in Indonesia. It uses regression analysis with panel data set covering 32 provinces in the period of 2007–2013 in order to estimate whether the infrastructure has positive or negative effects on income inequality. We use a conventional income inequality measure, Gini index. The model is estimated by simple pooled OLS, fixed-effect and random-effect models. To overcome the endogeneity problem, infrastructures quantity and quality indicators enter the regressions with one-year lag. We find that road and telecommunication quantities tend to boost income inequality, while electricity quantity, airport quantity, and airport quality have a favorable impact on the distribution of income and help to alleviate income inequality. Whereas, when these different categories of infrastructure are formed as synthetic indices, the relation between these indices and income inequality lends support to the idea that infrastructure increases income inequality.
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| first_indexed | 2024-04-11T11:41:24Z |
| format | Article |
| id | doaj.art-9723c617cdb24fa092a822350a3a8693 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-04-11T11:41:24Z |
| publishDate | 2017-03-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-9723c617cdb24fa092a822350a3a86932022-12-22T04:25:48ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2017-03-0191Infrastructure and inequality: An empirical evidence from IndonesiaAmien Makmuri01) MPED Ritsumeikan University, Japan a) Linkage Student of Economics Postgraduate Program, Universitas Indonesia, Jakarta, Indonesia. This research is an attempt to study the empirical relationship between infrastructure and income inequality in Indonesia. It uses regression analysis with panel data set covering 32 provinces in the period of 2007–2013 in order to estimate whether the infrastructure has positive or negative effects on income inequality. We use a conventional income inequality measure, Gini index. The model is estimated by simple pooled OLS, fixed-effect and random-effect models. To overcome the endogeneity problem, infrastructures quantity and quality indicators enter the regressions with one-year lag. We find that road and telecommunication quantities tend to boost income inequality, while electricity quantity, airport quantity, and airport quality have a favorable impact on the distribution of income and help to alleviate income inequality. Whereas, when these different categories of infrastructure are formed as synthetic indices, the relation between these indices and income inequality lends support to the idea that infrastructure increases income inequality. http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/7139income inequalityinequalityinfrastructureinfrastructure indexpanel data |
| spellingShingle | Amien Makmuri Infrastructure and inequality: An empirical evidence from Indonesia Economic Journal of Emerging Markets income inequality inequality infrastructure infrastructure index panel data |
| title | Infrastructure and inequality: An empirical evidence from Indonesia |
| title_full | Infrastructure and inequality: An empirical evidence from Indonesia |
| title_fullStr | Infrastructure and inequality: An empirical evidence from Indonesia |
| title_full_unstemmed | Infrastructure and inequality: An empirical evidence from Indonesia |
| title_short | Infrastructure and inequality: An empirical evidence from Indonesia |
| title_sort | infrastructure and inequality an empirical evidence from indonesia |
| topic | income inequality inequality infrastructure infrastructure index panel data |
| url | http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/7139 |
| work_keys_str_mv | AT amienmakmuri infrastructureandinequalityanempiricalevidencefromindonesia |