Publication details
Income Inequality, Economic Growth, and Domestic Investment: A Panel Data Study of Indonesian Provinces
| Authors | |
|---|---|
| Year of publication | 2026 |
| Type | Peer-reviewed scientific article |
| Magazine / Source | Review of Integrative Business & Economics Research |
| MU Faculty or unit | |
| Citation | |
| web | |
| Keywords | Income Inequality; Determinants of Income Inequality; Economic Growth; Domestic Investment |
| Attached files | |
| Description | This study aims to analyze the determinants of income inequity and its impact on economic growth and domestic investment in Indonesia over a 14-year period, 2010-2023. This study uses quantitative research design with panel data and incorporates a comparative analysis of the findings with existing literature. The research population includes all provinces in Indonesia, and the sample consists of 30 selected provinces. The research source of secondary data is the Central Bureau of Statistics and national report survey. The results showed that unemployment, life expectancy, and gross regional domestic product did not significantly affect income inequality in Indonesia. Human development index, poverty, and democracy index have a positive effect on income inequality in Indonesia. Education has a negative effect on income inequality. Furthermore, income inequality positively influences economic growth while exerting a negative impact on domestic investment. Policymakers should be aware that high levels of income inequality can hamper economic growth by limiting access to resources and opportunities for a large proportion of the population. Hence, it is crucial to adopt a holistic approach that prioritises equal access to education, addresses poverty, and ensures inclusive human development to foster a more equitable economy. |