{"id":8755,"date":"2024-11-19T11:53:39","date_gmt":"2024-11-19T03:53:39","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=8755"},"modified":"2024-11-22T16:03:12","modified_gmt":"2024-11-22T08:03:12","slug":"spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\/","title":{"rendered":"Spatial Analysis of Income Inequality: The Case of Sumatra Island, Indonesia"},"content":{"rendered":"<p><em>This study aims to examine the convergence of income inequality (Gini) and to investigate its determinants and spillover effects.This study used panel data from 10 provinces in Sumatra Island, Indonesia, spanning the years 2015-2022, sourced from the Statistics Indonesia and the Indonesian Ministry of Environment and Forestry. The Generalized Method of Moment was utilised to analyse the occurrence of convergence, while the Spatial Autoregressive model with Autoregressive Disturbances model was used to examine its direct effects and spillover effects. The results indicate that there is convergence in income inequality across provinces. Environmental quality, per capita income, and democracy directly reduce income inequality, whereas the industrial sector exacerbates it. <\/em><em>There is a strong spillover effect whereby an increase in real per capita income of the observed province reduces inequality in neighbouring provinces.<\/em><em> However, the expansion of the industrial sector across regions further increases inequality. Additionally, environmental quality, industry, and democracy do not have significant spillover effects.<\/em> <em>The study discovered convergence of income inequality (Gini) across provinces. We adopted the spatial econometric methods at the island scale, which have not previously been used in the Indonesian context. It also contributes to understanding the direct effects of democracy, environment, industry, and spillover effects of real income per capita on income inequality.<\/em> <em>The convergence results imply a process towards equilibrium in the performance of the determinant variables in each province. The spillover effect of real GRDP per capita highlights the role of the central government in strengthening inter-regional connectivity in Sumatra. Provincial governments play a role in providing direct effects that further strengthen democracy, environment, and income, as well as addressing ongoing industrial policies. Prudence in promoting growth needs to be pursued to ensure that the small industry sector can advance and contribute to broader equity, without compromising the environment.<\/em><\/p>\n","protected":false},"template":"","tags":[225,193,387,1884,1883],"jel-code":[],"article-type":[1329],"class_list":["entry","author-asriwn","post-8755","article","type-article","status-publish","tag-convergence","tag-income-inequality","tag-indonesia","tag-spatial","tag-spillover","article-type-normal-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Spatial Analysis of Income Inequality: The Case of Sumatra Island, Indonesia | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Spatial Analysis of Income Inequality: The Case of Sumatra Island, Indonesia | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"This study aims to examine the convergence of income inequality (Gini) and to investigate its determinants and spillover effects.This study used panel data from 10 provinces in Sumatra Island, Indonesia, spanning the years 2015-2022, sourced from the Statistics Indonesia and the Indonesian Ministry of Environment and Forestry. The Generalized MethodContinue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-22T08:03:12+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\\\/\",\"name\":\"Spatial Analysis of Income Inequality: The Case of Sumatra Island, Indonesia | Jurnal Ekonomi Malaysia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\"},\"datePublished\":\"2024-11-19T03:53:39+00:00\",\"dateModified\":\"2024-11-22T08:03:12+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Spatial Analysis of Income Inequality: The Case of Sumatra Island, Indonesia\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"name\":\"Jurnal Ekonomi Malaysia\",\"description\":\"Universiti Kebangsaan Malaysia\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\",\"name\":\"Jurnal Ekonomi Malaysia\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"contentUrl\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"width\":512,\"height\":308,\"caption\":\"Jurnal Ekonomi Malaysia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\",\"https:\\\/\\\/x.com\\\/EkonomiJurnal\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Spatial Analysis of Income Inequality: The Case of Sumatra Island, Indonesia | Jurnal Ekonomi Malaysia","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ukm.my\/jem\/article\/spatial-analysis-of-income-inequality-the-case-of-sumatra-island-indonesia\/","og_locale":"en_US","og_type":"article","og_title":"Spatial Analysis of Income Inequality: The Case of Sumatra Island, Indonesia | Jurnal Ekonomi Malaysia","og_description":"This study aims to examine the convergence of income inequality (Gini) and to investigate its determinants and spillover effects.This study used panel data from 10 provinces in Sumatra Island, Indonesia, spanning the years 2015-2022, sourced from the Statistics Indonesia and the Indonesian Ministry of Environment and Forestry. 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