| Summary: | Regional development is an integral part of national development. Along
with the development there was still a lot of inequality, both the regional and
sectoral, which are income inequality between regions and sectors inequality in
Indonesia. Therefore, this research aims to determine the level of inequality
between provinces, between territories, within territories, between regions, and
within regions, to know the factors that affect the level of income inequality
within regions, and to determine the level of sectors inequality in each region,
which sector experiencing the highest inequality and how inequality in the
agricultural sector.
This study used descriptive analysis. The datas used were panel data from
seven regions during the period 1996-2009 which obtained from the BPS and
Bank of Indonesia. Regional and sectoral inequality measured by the Theil Index
and the factors that affect inequality analyzed by SUR (Seemingly Unrelated
Regression) method.
The results showed that the regional income inequality in Indonesia
included the low to medium inequality. Factors that affected income inequality in
the region is the PAD, IPM, Investment and Fund Balanced. The sectors that
experienced high inequality such as mining, manufacturing, finance, construction,
services, and transportation sector. The agricultural sector experienced the low
inequality in all regions.
|
|---|