Regional Development Inequality on Income Disparity

Abstract

Income disparity and regional inequality are the two main focuses in empirical studies of development inequality. Decreasing inequality between regions, as well as equal distribution of income between groups and regions are indicators of successful development. This study aims to determine and examine the influence of the determinants of regional development inequality on income disparity in the Mebidangro Metropolitan Area in 2011-2022. The type of research used is descriptive quantitative. The data used in this study is secondary data with panel data type, combined time series and cross section from 2011-2022 and 4 regencies / cities in the Mebidangro Metropolitan Area. The variables used are Income Disparity (Y), Economic Growth (X1), Contribution of Processing Industry (X2), and Human Development Index (X3). In analyzing the data, a panel data regression model is used using Eviews 12 software. The approachmethod used to estimate the panel data regression model used is the Fixed Effect Model (FEM). The results
of this study indicate that Economic Growth, Contribution of Processing Industry, and Human
Development Index simultaneously affect Income Disparity. While partially, Economic Growth,
Contribution of Processing Industry, and Human Development Index have a negative and significant effect
on Income Disparity