Measuring Inequality Using J-Bonet Index: What Can We Learn from Regional Data?

Jihad Lukis Panjawa(1), Danur Condro Guritno(2), Rr Retno Sugiharti(3), Mahrus Lutfi Adi Kurniawan(4), Sekar Ayu Damayanti(5),

DOI: https://doi.org/10.15294/jejak.v16i1.38850


(1) Universitas Tidar
(2) National Dong Hwa University
(3) Universitas Tidar
(4) Universitas Ahmad Dahlan
(5) Universitas Tidar

Abstract

This paper aims to analyze Inequality Using J-Bonet Index Distribution based on regions dimension and its determinant factors. This study uses a quantitative research approach with Quantile Regression (QR) analysis. The results showed that overall, there was no noticeable difference in income inequality among regions. However, according to the status of regions and regions, the expansion area in eastern Indonesia is twice as high as regional income inequality in the parent area in the same region. Other findings, economic growth and poverty cause high-income inequality in eastern Indonesia, while in the western region of Indonesia has no significant effect. In western Indonesia, fiscal decentralization is the cause of high-income inequality between regions, while in eastern Indonesia has no significant effect. Human development has no real impact on income inequality. It is a preliminary study of inequality using J-Bonet and its determinants in Indonesia based on regions dimension with Quantile Regression (QR) as an analysis tool. It can add empirical evidence about the inequality and region dimension.

Full Text:

PDF

References

Amrullah, M., Wahyudi, S. T., & Ekawaty, M. (2020). Apakah Indeks Pembangunan Manusia Dan Hotel Mempengaruhi Disparitas Pendapatan? Jurnal Ekonomi Kuantitatif Terapan, 13(2), 307–316. https: //doi.org/10.24843/jekt.2020.v13.i02.p07

Aritenang, A. F. (2014). The spatial effect of fiscal decentralisation on regional disparities : the case from Indonesia. Indonesian Journal of Geography, 4(1), 1–11.

Bonet, J. (2006). Fiscal decentralization and regional income disparities: Evidence from the Colombian experience. Annals of Regional Science, 40(3), 661–676.

Cahyono, H., Subroto, W. T., & Anwar, K. (2017). Income Disparity in Gerbangkertosusila Area of East Java Indonesia. International Journal of Economics and Financial Issues, 7(1), 14–18.

Chotia, V., & Rao, N. V. . (2014). Investigating The Interlinkages between Infrastructure Development, Poverty, and Rural-Urban Income Inequality: Evidance from BRICS Nations. Studies in Economics and Finance, 34(4), 466–484.

Fadli, F. (2016). Analysis of Direct and Indirect Effects of Fiscal Decentralization on Regional Disparity (Case Study of Provinces in Eastren and Westren of Indonesia, 2006-2015. Journal of Indonesia Applied Economics, 6(2), 208–228.

Farida, N., Agus, S., & Sakti, R. K. (2021). Fiscal Decentralization , Economic Growth and Regional Development Inequality in Eastern Indonesia. Journal of Indo-nesia Applied Economics, 9(2).

Hassan, S. A., Zaman, K., & Gul, S. (2015). The Relationship between Growth-Inequality-Poverty Triangle and Environmental Degradation: Unveil-ing the Reality. Arab Economic and Business Journal, 10(1), 57–71. https://doi.org/10.1016/j.aebj.2014.05.007

Hindun, H., Soejoto, A., & Hariyati, H. (2019). Pengaruh Pendidikan, Pengangguran, dan Kemiskinan terhadap Ketimpangan Pendapatan di Indonesia. Jurnal Ekonomi Bisnis Dan Kewirausahaan, 8(3), 250. https://doi. org/10.26418/jebik.v8i3.34721

Indra, I., Nazara, S., Hartono, D., & Sumarto, S. (2018). Expenditure inequality and polarization in Indonesia, 2002-2012. International Journal of Social Economics, 45(10), 1469–1486. https://doi.org/10.1108/ IJSE-02-2017-0051

Kuncoro, M., & Murbarani, N. (2016). Regional inequality in indonesia. The Business and Management Review, 8(1), 38–52.

Leigh, A., & van der Eng, P. (2009). Inequality in Indonesia: What can we learn from top incomes? Journal of Public Economics, 93(1–2), 209–212. https://doi.org/10.1016/ j.jpubeco.2008.09.005

Lessmann, C., & Seidel, A. (2017). Regional inequality, convergence, and its determinants – A view from outer space. European Economic Review, 92. https://doi.org/10.1016/j.euroecorev.2016.11.009

Li, Y., & Westlund, H. (2013). Interpreting overall inequality in China: The roles of physical capital, human capital and social capital. Regional Science Inquiry, 5(2), 145–150.

Liu, Y., Martinez-Vazquez, J., & Wu, A. M. (2017). Fiscal decentralization, equalization, and intra-provincial inequality in China. International Tax and Public Finance, 24(2), 248–281. https://doi.org/10.1007/ s10797-016-9416-1

Ngozi, B., Gershon, O., Ogundipe, A., Owolabi, O., Ogunrinola, I., & Adediran, O. (2020). Comparative investigation of the growth-poverty-inequality trilemma in Sub-Saharan Africa and Latin American and Caribbean Countries. Heliyon, 6, 1–11. https://doi.org/10.1016/j.heliyon.2020.e05631

Nugraha, A. T., & Prayitno, G. (2020). Regional Disparity in Western and Eastern Indonesia. International Journal of Economics and Business Administration, VIII(Issue 4), 101–110. https://doi.org/10. 35808/ijeba/572

Postoiu, C., & Bușega, I. (2015). Inter-Regional Disparities In The European Union. Romanian Review of Regional Studies, XI(1), 15–17.

Rodriguez-Pose, A., & Ezcurra, R. (2010). Does decentralization matter for regional disparities ? A cross-country analysis. Journal of Economic Geography, 10(September 2009), 619–644. https:// doi.org/10.1093/jeg/lbp049

Shahzad, S., & Yasmin, B. (2016). Does fiscal decentralisation matter for poverty and income inequality in Pakistan? Pakistan Development Review, 55(4).

Zhang, J. (2021). The effects of tourism on income inequality: A meta-analysis of econometrics studies. Journal of Hospitality and Tourism Management, 48(26), 312–321. https://doi.org/10.1016 /j.jhtm.2021.07.009

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.