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Economic agglomeration, economic growth and income inequality in regional economies

Author

Listed:
  • Imam Mukhlis
  • Isnawati Hidayah
  • Sariyani

    (Department of Development Economics, Faculty of Economics, Universitas Negeri Malang, Malang, Indonesia
    Master’s Student, Master of International Development Studies, Wageningen University & Research, Hollandseweg 1, 6706 KN Wageningen, The Netherlands.
    Master’s Student, Master of Economics, Postraduate Study, Universitas Negeri Malang, Malang, Indonesia)

Abstract

This study analyses the relationship between economic agglomeration, economic growth, and income inequality in East Java Province, Indonesia, in 2011-2015, after implementing a regional autonomy policy of regional development. It uses panel data with a random effect model. The model estimation’s result suggests that economic agglomeration significantly and positively affects income inequality. However, economic growth does not have any significant effects on income inequality.

Suggested Citation

  • Imam Mukhlis & Isnawati Hidayah & Sariyani, 2018. "Economic agglomeration, economic growth and income inequality in regional economies," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 205-212, Oktober.
    • Handle: RePEc:uii:journl:v:10:y:2018:i:2:p:205-212
    DOI: 10.20885/ejem.vol10.iss2.art9
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    References listed on IDEAS

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    Cited by:

    1. Jun Zhao & Xiucheng Dong & Kangyin Dong, 2021. "Can agglomeration of producer services reduce urban–rural income inequality? The case of China," Australian Economic Papers, Wiley Blackwell, vol. 60(4), pages 736-762, December.
    2. 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.

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    More about this item

    Keywords

    Economic agglomeration; income inequality; economic growth; gini ratio; panel data;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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