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Inequality across districts and cities in the Riau

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  • Muhammad Hidayat

    (Department of Economics, Andalas University, Padang, Indonesia.)

Abstract

This research aims to analyze the level of development inequality across regions in the Riau province. This research attempts to identify and analyze the factors that cause inequality as well as to formulate a development policy for reducing inequalities in that region. This study used Theil index and regression analysis. The results of analysis using the Theil index indicate the existence of inequality between different development regions in the Riau Province with the percentage 50%-70%. From the regression analysis, this paper found that some economic and social factors were the important factors of development inequality in the province such as human development index and infrastructure budgets.

Suggested Citation

  • Muhammad Hidayat, 2014. "Inequality across districts and cities in the Riau," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(2), pages 106-118, April.
    • Handle: RePEc:uii:journl:v:6:y:2014:i:2:p:106-118
    DOI: http://dx.doi.org/10.20885/ejem.vol6.iss2.art4
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    References listed on IDEAS

    as
    1. Sylwester, Kevin, 2002. "Can education expenditures reduce income inequality?," Economics of Education Review, Elsevier, vol. 21(1), pages 43-52, February.
    2. Takahiro Akita, 2002. "Income Inequality in Indonesia," Working Papers EMS_2002_02, Research Institute, International University of Japan.
    3. Takahiro Akita, 2002. "Regional Income Inequality In Indonesia And The Initial Impact Of The Economic Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(2), pages 201-222.
    4. Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(1), pages 55-77, February.
    5. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 133-152.
    6. Dapeng Hu & Masahisa Fujita, 2001. "Regional disparity in China 1985-1994: The effects of globalization and economic liberalization," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 3-37.
    7. Matsui, Kazuhisa, 2005. "Post-decentralization regional economies and actors -- putting the capacity of Local governments to the test," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 43(1), pages 171-189, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 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.
    2. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2023. "The Influence of Investment, Energy Infrastructure, and Human Capital Towards Convergence of Regional Disparities in Sumatra Island, Indonesia; Using Oil and Gas Data and Without Oil and Gas," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 139-149, July.
    3. Muhammad Hidayat & Ranti Darwin & M. Fikry Hadi, 2018. "Inequality of Interregional Development in Riau Indonesia; Panel Data Regression Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 184-189.

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    More about this item

    Keywords

    development; inequility; theil index; region; district.;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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