scholarly journals Analysis Of Financial and Income Disparity Between Rural-Urban Areas In Indonesia

Author(s):  
Yuni Andari

The purpose of this study is to analyze the factors that affect income disparity between rural-urban areas in Indonesia and to analyze the effect of financial development on economic inequality. The research method used is a quantitative descriptive analysis using multiple linear regression of panel data during the period of 2014-2017. The dependent variable in this study is the difference in income between rural and urban using differences in the amount of rural and urban expenditure as a proxy. The independent variables consist of financial depth scale with total bank assets as a proxy, financial activity withthe amount of agricultural credit as a proxy, and financial efficiency with the ratio of loan to deposit as a proxy. Other control variables are also analyzed including per capita income, government spending, level of education and trade openness. The results of the study showed that the effect of total bank assets on income disparity between rural and urban areas was positive and significant, while the effect of agricultural credit and the ratio between credit to bank deposits did not significantly influence income disparity between rural and urban areas. Government spending, per capita income and education have a positive and significant effect on income disparity between rural and urban areas. Meanwhile, net export as a proxy of regional economic openness data does not significantly influence income disparity. Based on the results of the study, the policy implications that can be recommended to reduce income inequality between rural-urban areas are through increasing the scale of banking finance, increasing government spending on rural areas, increasing the education of rural communities and increasing income per capita

Author(s):  
Herr Hansjörg ◽  
Stachuletz Rainer

As the result of the “Doi-Moi” reform policy, Vietnam has experienced a remarkable phase of growth since 1986. In this period the Gross Domestic Product (GDP) quadrupled. Since the population of Vietnam (about 88.5 million people in 2010) is currently growing by more than one million people annually, the increase in per capita income lags behind GDP growth, but still reached 2900 U.S. dollars in 2009,which ranks 1652 in the world (see Table 1). In order to prevent its per capita income from falling off because of this huge increase in population growth, Vietnam needs a real GDP growth of over 5%. Although the poverty rate was decreased from 58% to 13% between 2003 and 2008, considerable regional disparities especially between rural and urban areas continue to persist.


2018 ◽  
Vol 3 (1) ◽  
pp. 39 ◽  
Author(s):  
Ririn Purnama Sari ◽  
Istiqlaliyah Muflikhati

<pre>The aims of this study is to analyze the differences and the effects of mother’s motivation and preference on behavior of fish consumption in families in rural and urban areas. The research design which used was cross sectional study with purposive location selection in Duwet Village, Pekalongan Regency, and Kandang Panjang, Pekalongan City. The sample in this study is 100 families consisted of 50 families in rural areas and 50 families in urban areas. The results show that urban families prefer fresh sea fish, while rural families prefer pindang fish. The result of multiple linear regression analysis showed that factors affecting the fish consumption behavior of rural family is family size, and per capita income, while fish consumption behavior of urban family  influenced by family size, per capita income, and preference.</pre>


1973 ◽  
Vol 12 (4) ◽  
pp. 433-437
Author(s):  
Sarfaraz Khan Qureshi

In the Summer 1973 issue of the Pakistan Development Review, Mr. Mohammad Ghaffar Chaudhry [1] has dealt with two very important issues relating to the intersectoral tax equity and the intrasectoral tax equity within the agricultural sector in Pakistan. Using a simple criterion for vertical tax equity that implies that the tax rate rises with per capita income such that the ratio of revenue to income rises at the same percentage rate as per capita income, Mr. Chaudhry found that the agricultural sector is overtaxed in Pakistan. Mr. Chaudhry further found that the land tax is a regressive levy with respect to the farm size. Both findings, if valid, have important policy implications. In this note we argue that the validity of the findings on intersectoral tax equity depends on the treatment of water rate as tax rather than the price of a service provided by the Government and on the shifting assumptions regard¬ing the indirect taxes on imports and domestic production levied by the Central Government. The relevance of the findings on the intrasectoral tax burden would have been more obvious if the tax liability was related to income from land per capita.


2021 ◽  
Vol 4 (2) ◽  
pp. 125-144
Author(s):  
Andrew Phiri ◽  

The movie industry is increasingly recognised as a possible avenue for improving economic performance. This study focuses on film production and its influence on South African economic growth (per capita income and employment between 1970 and 2020). Our autoregressive lag distributive (ARDL) estimates on a loglinearised endogenous growth model augmented with creative capital indicate that the production of movies has no significant effects on long-run GDP growth, per capita GDP and employment. The baseline regressions find a short-run positive and significant influence of film production on per capita income and are devoid of long-run effects. However, re-estimating the regressions with interactive terms between movie production and i) government spending ii) foreign direct investment, improve the significance of film regression coefficients which all turn positive and significant, for government spending, and negative for foreign direct investment. Our results indicate that foreign investment crowds out domestic investment whilst government investment in movies is growth-enhancing.


2020 ◽  
Vol 6 (2) ◽  
pp. 525-538
Author(s):  
Rashid Ahmad ◽  
Muhammad Zahir Faridi

This study aims to explore the socio-economic and demographic determinants of poverty in Southern Punjab by using the cross sectional data consisting of 785 household heads. Binary logistic regression  and ordinary least square method are used for estimation. The findings exhibit that the variables like family system, household size, presence of disease and status of employment of household head are positively and significantly related to  poverty whereas household head age, rural-to-urban migration,  years of schooling,  number of earners, women status of work, remittances, the physical assets value and ownership of house significantly and negatively influence the likelihood of poverty and positively influence the per capita income of the households in Southern Punjab. The study also provides the comparison of regional and division level. It is concluded that DG Khan division is the poorest among all the divisions of the southern Punjab. In DG Khan Division, the households have less education, high dependency ratio. In rural areas of southern Punjab, there is more poverty as compare to urban areas. The rural poverty is due to many factors like high dependency rate, lower level of education, adoption of profession, lower per capita income, dissaving. It is suggested that education should be promoted, employment opportunity should be provided so that dependency rate may be reduced, rural areas should be restructured by provision of basic necessities of life.


2013 ◽  
Vol 2 (2) ◽  
pp. 251-275 ◽  
Author(s):  
Waqas Ahmed ◽  
Khalid Zaman ◽  
Sadaf Taj ◽  
Rabiah Rustam ◽  
Muhammad Waseem ◽  
...  

PurposeThis study aims to examine the relationship between electricity consumption per capita (ELEC) and real per capita income (Y), as the direction of causation of this relationship remains controversial in the existing literature. It also seeks to explore the relationship between energy consumption per capita (ENC) and real per capita income, over a 34‐year period (between 1975 and 2009).Design/methodology/approachThe study uses Johansen cointegration technique to determine the short‐ and long‐run relationship between the variables. The authors also utilize Granger causality test to determine the causal relationship between the selected variables.FindingsThe study provides evidence of bi‐directional causality between the electricity consumption per capita and real per capita income on one hand; and energy consumption per capita and real per capita income on the other hand as the direction of causality has significant policy implications.Research limitations/implicationsThis study does not include all dimensions of the energy growth, but is limited to the three variables which the authors consider to be critical to economic development, including energy consumption, electricity consumption and economic growth.Originality/valueThe study uses a sophisticated econometric technique with additional tests of forecasting framework to examine the effect of energy demand on economic growth over a period of the next ten years, i.e. 2010‐2019, in the context of Pakistan. The impulse response describes the reaction of the system as a function of independent variable that parameterizes the dynamic behavior of the system.


2014 ◽  
Vol 13 (2) ◽  
pp. 171-188
Author(s):  
Patrycja Zwiech ◽  
Anna Turczak

Abstract The goal of this article is to verify the hypothesis that from 2000 to 2011 the discrepancies between material living standards in the countryside and cities of different sizes blurred in Poland year by year. On the basis of the research conducted it has been determined that over the first decade of the 21st century the discrepancy between the living standards in Poland’s rural and urban areas decreased in terms of the amount and structure of expenditure per capita, volume of quantitative consumption, housing conditions and household equipment including durable goods. This conclusion has been drawn because the level of examined variables, both in the countryside and cities or towns of different sizes over the years 2000–2011, approached in most cases the level observed for the whole country.


2019 ◽  
Vol 8 (2) ◽  
pp. 71-83
Author(s):  
Luh Dita Darmayanti ◽  
Surya Dewi Rustariyuni

The degree of public health can be measured by looking at the amount of Life Expectancy (AHH). AHH is the result of calculating projections often used as one of the People's Welfare Indicators (IKR). Assuming a declining trend in infant mortality rates (IMR) and changes in the population's age composition, the objectives in this study are: 1) to analyze the effect of income per capita, government spending in education, and health simultaneously affect life expectancy in Bali Province / City in the 2011-2017 period and 2) to analyze the effect of per capita income, government spending the education and health sector influences the life expectancy in the Regency / City of Bali Province in the 2011-2017 period. The data used in this study is secondary data in 2011-2017. This study uses Multiple Linear Regression analysis techniques used to process classical assumption test data using Eviews 9. The results of this study stated that the variable income per capita (X1), government expenditure in education (X2), and government expenditure in health (X3) simultaneously affected the life expectancy (Y) in districts/cities in Bali Province. Partially per capita income has a positive and significant impact on life expectancy. Government expenditure in education and government expenditure in health does not affect life expectancy in Bali Province districts/cities.  


2015 ◽  
Vol 6 (3) ◽  
pp. 43-49
Author(s):  
Eleonora Sofilda ◽  
Muhammad Zilal Hamzah .

In many countries, include Indonesia, a centralized government has a sizeable negative impact on inequality of development. During the New Regime Order era with a centralized system, Indonesia's development is concentrated in the western part of Indonesia which had led to inequality in terms of per capita income and human development. To solve these problems, one of the economic reforms undertaken by the Indonesia government is changes the system from a centralized to a decentralized system. Through the fiscal decentralization under Law No. 22/99 and 25/99, they hope to improve people's welfare and reduce inequality. This research is aim to assess the effect of government spending and investment on the growth of per capita income and see the effect of the growth of per capita income towards Human Development Index (HDI). The method used is multiple regression with panel data and the study from year 2007-2012 by dividing the two groups of regions ie: western Indonesia and central&eastern Indonesia. Based on the research results, for the western Indonesia, goods and services expenditure has a significant effect on the per capita income growth and per capita income growth significantly affect the human development index (HDI). For the central and eastern Indonesia, domestic and foreign direct investment (DDI and FDI), goods and services expenditure, and capital expenditures have a significant effect toward per capita income growth and per capita income growth effect significantly toward the HDI.


1975 ◽  
Vol 14 (4) ◽  
pp. 381-396 ◽  
Author(s):  
A. R. Kemal

The domestic resources of the developing countries are usually too limited even to permit a steady maintenance of their per capita income. In their attempt to improve the level of their per capita income, such countries resort to the strategy of increasing their growth rate by relying on foreign resources. In an economy, where population is growing at the rate of 3 percent per annum, and saving capacity is less than 10 percent of the G.N.P., the chances of increasing the per capita income are very low. Capital inflow allows an economy to grow at a higher rate. It is expected that an increasing proportion of increased income will be saved so that the economy would be self-reliant after some years. How¬ever, most of the aid to the developing countries is in the form of loans, often on very unfavourable terms, with the result that the debt servicing problem becomes quite serious. The huge burden of debt servicing makes it rather difficult for the developing countries to attain self-reliance. Since a continuous aid inflow means a surrender of national sovereignty to some extent, almost all the developing countries want to eliminate their dependence on aid as soon as possible. To achieve this objective, many developing countries set a time period after which the capital inflow would hopefully be zero. If a time limit is to be set, then we must know the policies that a government will have to follow in order to eliminate aid flows. In particular, we need to know the maximum allowance for consumption out of the increase in national income. Similarly, if there is a limit to the marginal propensity to save, we must determine the period over which a country can realistically hope to do away with the aid.


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