INCOME DISTRIBUTION INEQUALITY IN WEST SUMATERA AND THE RELATED FACTORS
Causal relationship between inequality and growth is far from being well understood. In West Sumatera the higher level of growth rate followed by an increasing in Gini ratio or increasing in income inequality. A sharp rise of income inequality has caused discussion about factors affecting inequality. Objectives of this research are to analyze income inequality condition in each Regency/Municipality in West Sumatera and to analyze the factors affecting income inequality. Through the calculation of the Gini ratio, it was found that the highest income distribution inequality in Regency/Municipality level in West Sumatra from 2006 to 2011 are owned by the Mentawai Islands District with an average Gini ratio is 0.311, while the lowest income distribution inequality of the average owned by the Pesisir Selatan District with an average Gini ratio is 0.217. This research is investigated by analyzing a balance panel data with 19 districts from 2006 to 2011. This study found that there are seven variables which can be associated with a movement in income inequality. Income per capita, routine spending for government officials and dummy earthquake have a positive relationship with income distribution inequality. Meanwhile, industrial sector’s share toward Gross Regional Domestic Products (GRDP), government spending for development program, number of workers in industry and population growth have negative impact.
Key words: income distribution, inequality, earthquake, west sumatera
Afonso A, Schuknecht L, Tanzi V. 2008. Income Distribution Determinants and Public Spending Efficiency. Working Paper No.861. Eropa: European Central Bank
Arsyad L. 1997. Ekonomi Pembangunan. Ed 3 Yogyakarta (ID): Bagian Penerbitan STIE YKPN
Barro RJ. 2008. Inequality and Growth Revisited. Working Paper Series On Regional Economic Integration No.11 Amerika Serikat (US): Asian Development Bank
Basdevant O, Benicio D, Yakhshilikov. 2012. Inequalities and growth in the Southern African Customs Union (SACU) Region. Afrika Selatan (tZA): IMF Working Paper
[BI] Bank Indonesia. 2013. Kajian Ekonomi Regional Provinsi Sumatera Barat. Padang (ID): BI Wilayah VIII.
[BPS] Badan Pusat Statistik Provinsi Sumatera Barat. 2007-2012. Daerah dalam Angka Provinsi Sumatera Barat. Padang (ID): BPS Provinsi Sumatera Barat.
Cornia GA, Kiiski S. 2001. Trends in Income Distribution in the Post-World War II Period. Discussion Paper No.2001/89 Amerika Serikat (US): UNU/WIDER
Eicher T, Garcia-Penalosa C. 2000. Inequality And Growth: The Dual Role Of Human Capital In Development. Working Paper No. 355. Jerman (DE): Leibniz Institute for Economic Research at the University of Munich (CESifo)
Firdaus M. 2011. Aplikasi Ekonometrika untuk Data Panel dan Time Series. Bogor (ID): IPB Press
Gujarati DN. 2004. Basic Econometrics 4th Edition. New York: McGraw Hill
Kassa A. 2003. Factors Influencing Income Inequality in Transition Economies. Tartu: Tartu University Press
Kuznets S. 1955. Economic Growth and Income Inequality. The American Economic Review. Vol 45, Issue 1 (Mar.,1955), 1-28. Amerika Serikat (AS): JSTOR.
Nikoloski Z. 2009. Economic and Political Determinants of Income Inequality. London
(GB): University College London Ray D. 1998. Development Economics. New Jersey: Princeton University Press
Rodriguez-Oreggia E, Fuente A, Torre R, Moreno H, Rodriguez C. 2010. The Impact of Natural Disaster on Human Development and Poverty at the Municipal Level in Mexico. CID Working Paper No. 43. Harvard (US): Center for International Development at Harvard University
Sylwester K. 2003. Income Inequality and Population Density 1500 AD: A Connection. Journal of Economic Development. Vol XXVIII No.2. Carbondale (US): Department of Economics.
Todaro MP, Smith SC. 2006. Pembangunan Ekonomi. Jilid 1. Ed 9. Yelvi A, penerjemah; Barnadi D, Hardani W, editor. Jakarta (ID): Penerbit Erlangga.
Yamamura E. 2013. Impact of Natural Disaster on Income Inequality: Analysis Using Panel Data During the Period 1965 to 2004. MPRA Paper No. 45623. Muenchen: Munich Personal RePEc Archive MPRA
The authors who publis article(s) in Jurnal Ekonomi and Kebijakan Pembangunan have to understand and agree that the copyright of article published is owned by Jurnal ekonomi and Kebijakan pembangunan including to reproduce, distribute and sell this journal to public.