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Does Energy Infrastructure Reduce Inequality Inter-regional in Riau Province, Indonesia?

Author

Listed:
  • Muhammad Hidayat

    (Department of Economics, Faculty Economic and Business, Universitas Muhammadiyah Riau, Indonesia.)

  • Ranti Darwin

    (Department of Economics, Faculty Economic and Business, Universitas Muhammadiyah Riau, Indonesia.)

  • M. Fikry Hadi

    (Department of Economics, Faculty Economic and Business, Universitas Muhammadiyah Riau, Indonesia.)

Abstract

This research aims to determine the effect of energy infrastructure on the dynamics of development inequality that occurs between regions in Riau Province by adding economic growth and balanced funds as control variables. The analysis used dynamic panel data modeling with Generalized Method of Moment (GMM) approach and datasets from 12 regions in 7 years starting from 2011 to 2017. The results of the model show that the inequality of the previous period and economic growth can significantly increase inequality. Whereas balance funds and electricity infrastructure have a negative and significant influence, or can reduce inequality significantly. These results provide evidence that energy infrastructure can reduce inequality.

Suggested Citation

  • Muhammad Hidayat & Ranti Darwin & M. Fikry Hadi, 2020. "Does Energy Infrastructure Reduce Inequality Inter-regional in Riau Province, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 160-164.
    • Handle: RePEc:eco:journ2:2020-01-24
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    References listed on IDEAS

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    Cited by:

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    2. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2022. "Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 274-281, July.

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    More about this item

    Keywords

    Inequality; Energy Infrastructure; GMM; Riau;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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