Effects of Human Development and Capital Stock on Income Inequality in Indonesia
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 5
Abstract
The purpose of this study is to empirically investigate the effects of human development and capital stock on income inequality across 33 provinces in Indonesia over the period from 2012 to 2017. Annual data of human development index, capital stock, and inequality index were analyzed using the multiple panel regression. Based on the fixed effect model of panel data analysis, the study found that both human development and capital stock affected significantly and negatively income inequality across 33 provinces in Indonesia. These findings imply that, to reduce the income inequality nationwide, the government of Indonesia should focus on improving the dimensions of human development index by allocating more budgets on economic, educational, and health sectors. Additionally, the government should provide conducive environment for the domestic and foreign investors to attract more investment in the country.
Authors and Affiliations
Isthafan Najmi, Raja Masbar, Nazamuddin . , Muhammad Nasir
Keywords
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- EP ID EP414926
- DOI 10.9790/5933-0905023136
- Views 218
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