scholarly journals Economic growth and inequality of income distribution between regions: Evidence from Bali Province, Indonesia

2021 ◽  
Vol 4 (1) ◽  
pp. 69
Author(s):  
Dewa Putu Sudibya Sukmaadi ◽  
A.A.Istri Ngurah Marhaeni

Bali Province shows a prominent performance in the development of the tourism sector. However, essential problems were found related to inequality in the distribution of income between regions. The aim of this study was to analyze the effect of locally-generated revenue, education spending, health spending, investment and infrastructure on economic growth and inequality in income distribution between districts/cities in the province Bali. This study uses a quantitative approach. The study explores panel data that combines time series and cross section data from the Regency / City of Bali Province during 2010 - 2017. The data analysis method uses path analysis. The results showed that local revenue, education spending, government spending on health, investment, and infrastructure had a positive effect on economic growth and reduced income inequality between regions. Economic growth is also able to mediate the influence of variables on inequality. The findings of this study emphasize the importance of planning coordination from each district and city to mutually commit to mobilizing all local resources such as human resources, finance, investment and infrastructure; to generate economic growth and reduce inequality between regions.JEL Classification  E27; H75; R58

2006 ◽  
Vol 23 (2) ◽  
pp. 28-52 ◽  
Author(s):  
James D. Gwartney ◽  
Robert A. Lawson

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes.


Author(s):  
Anıl Duman ◽  
Alper Duman

This chapter examines the degree of income and institutional convergence between Turkey and European Union (EU) as well as trends in inequality and poverty by taking a long-term perspective as changes in polices an institutions impact on economic and social outcomes, often with considerable lags. The authors’ findings reveal that Turkey has successfully transformed its inward-looking and largely agricultural economy in the past 35 years into an export-oriented and urban-based economy. The transformation has been achieved mostly in periods of dramatic reform embedded in business and political cycles. Nevertheless, in the most recent era, there have been significant setbacks for certain groups in terms of regulatory environment, equality of opportunity, and access to markets and resources. Although there has been progress in the overall distribution of income and other aspects of social inclusion, convergence to EU standards is not easy to observe in these indicators.


2019 ◽  
Vol 2 (2) ◽  
pp. 146-151
Author(s):  
Hendri Hendri ◽  
Efrizal Syofyan ◽  
Idris Idris

The purpose of this study is to know and analyze the influence of the local revenue, the balance fund, the capital expenditure and the private investment on economic growth. This research is an exploratory study conducted on 19 regency/city government in West Sumatera Province. Data analysis techniques are descriptive analysis, classical assumption test, and panel data regression analysis. The results of this study found that: 1) The local revenue of the region has no significant effect on economic growth, 2) the Balance fund has a significant positive impact on economic growth, 3) the Capital expenditure has a significant positive effect on economic growth, 4) the Private investment has a significant positive effect on economic growth.


Author(s):  
Olvy Beatriks Talangamin ◽  
Paulus . Kindangen ◽  
Rosalina A.M. Koleangan

ABSTRAKPertumbuhan ekonomi merupakan salah satu indikator yang digunakan dalam  menentukan keberhasilan pembangunan. Pertumbuhan ekonomi yang tinggi dapat membuat kesejahteraan masyarakat menjadi semakin baik. Pertumbuhan ekonomi dapat diartikan sebagai perkembangan kegiatan dalam perekonomian yang menyebabkan barang dan jasa yang diproduksi dalam masyarakat bertambah (Sukirno, 2010).  Tujuan dari penelitian ini untuk menganalisis bagaimana pengaruh PAD, DAU dan DAK terhadap pertumbuhan ekonomi di Kota Tomohon. Desentralisi berarti penyerahan urusan pemerintah dari pemerintah daerah tingkat atas kepada daerah (kuncoro, 2006). Semakin tinggi PAD yang diperoleh suatu daerah maka akan semakin tinggi pertumbuhan ekonomi di daerah tersebut.  Menurut Brata (2004) yang dikutip oleh Adi dan Harianto (2007) menyatakan bahwa terdapat dua komponen penerimaan daerah yang berpengaruh positif secara signifikan terhadap pertumbuhan ekonomi daerah yaitu PAD serta sumbangan dan bantuan. Teknik analisis yang digunakan adalah analisis regresi berganda.  Hasil penelitian menunjukan bahwa pendapatan asli daerah berpengaruh positif akan tetapi tidak signifikan terhadap pertumbuhan ekonomi. dana alokasi umum berpengaruh positif signifikan terhadap pertumbuhan ekonomi. dana alokasi khusus berpengaruh positif signifikan terhadap pertumbuhan ekonomi. Kata Kunci: Pendapatan Asli Daerah (PAD), Dana Alokasi Umum (DAU), Dana Alokasi Khusus (DAK) dan Pertumbuhan Ekonomi ABSTRACTEconomic growth is one of the indicators used in determining the success of development. High economic growth can make people's welfare even better Economic growth can be defined as the development of activities in the economy that cause goods and services produced in the community increases (Sukirno, 2010).  The purpose of this study is to analyze how the influence of PAD, DAU and DAK on economic growth in Tomohon City. Decentralization means the handover of government affairs from upper level regional governments to regions (kuncoro, 2006). The higher the PAD obtained by a region, the higher the economic growth in the region. According Brata (2004) cited by Adi and Harianto (2007) states that there are two components of local revenue that significantly positive effect on regional economic growth that is PAD and donations and assistance. The analysis technique used is multiple regression analysis. The result of research shows that the original revenue of the region has positive but not significant effect on the economic growth. general allocation funds have a significant positive effect on economic growth. special allocation funds have a significant positive effect on economic growth. Keywords: Pendapatan Asli Daerah (PAD), General Allocation Fund (DAU), Special Allocation Fund (DAK) and Economic Growth


2014 ◽  
Vol 3 (2) ◽  
pp. 161
Author(s):  
Mike Triani

The purpose of this study was to determine and analyze The effect of formal education , international trade , the health of the population the amount of investment , and income distribution affects economic growth in provinces in Indonesia. The scope of this study is to analyze the variable distribution of income , economic growth in the provinces in Indonesia . It also uses a variable formal education , international trade , health , and investment . Based on the time it was collected , the data used in this study using the pooling of data ( panel data) period of 2008 to 2010.Keywords: formal education , international trade , the health of the population total investment and economic growth


2018 ◽  
Vol 3 (1) ◽  
pp. 8-22
Author(s):  
Stannia Cahaya Suci ◽  
Alla Asmara

Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central government. However, in practice, there are many areas that still rely on the assistance central finance for their regional development. This research aims to discuss the development of regional finance independency and analyze the influence of regional finance independency on economic growth in Banten Province. This research uses descriptive method and panel data on 6 (six) regencies and cities in Banten Province at 2001-2011. The results showed the significantly positive effect of regional finance independency on economic growth and significantly negative effect of balance fund’s ratio on economic growth. Key words: local revenue, economic growth, panel data


2018 ◽  
Vol 3 (1) ◽  
pp. 8-22
Author(s):  
Stannia Cahaya Suci ◽  
Alla Asmara

Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central government. However, in practice, there are many areas that still rely on the assistance central finance for their regional development. This research aims to discuss the development of regional finance independency and analyze the influence of regional finance independency on economic growth in Banten Province. This research uses descriptive method and panel data on 6 (six) regencies and cities in Banten Province at 2001-2011. The results showed the significantly positive effect of regional finance independency on economic growth and significantly negative effect of balance fund’s ratio on economic growth. Key words: local revenue, economic growth, panel data


2015 ◽  
Vol 2 (1) ◽  
pp. 77
Author(s):  
Teuta Balliu ◽  
Aida Gaçe Llozana ◽  
Mimoza Kotollaku

Economists and researchers increasingly debate regarding costs, benefits and even measurements of the informal economy. Such discussions are also indisputable part of our country reality. They evidence more and more the influence that the informal economy occupies in the gross domestic product of a country. Others consider informal economy as lubricating social welfare. Nowadays taking into account the economic situation in Albania, the informal economy is considered blow in the market competition, this competition which in turn is considered of particular importance for the economic development of the country. Throughout the paper we will look at whether the policies and strategies of a state, undertaken in the framework of economic growth, do not bring a reduction in unemployment and efficient distribution of income then there will be no reduction of informality. In terms of tourism sector it will be concluded that it is this informality which deviates the so much required standards in domestic tourism. In the region, the lodging taxes are estimated at 1 euro, while in our country it varies no more than 5% of the price of the room. This is why it remains difficult to calculate costs, which amounts millions of euros just in this part of the tourism sector.


Author(s):  
Hedwigis Esti Riwayati

This study aimed to analyze the influence of regional revenue, capital expenditures, labor and small and medium enterprises towards the regional economic growth in the Regencies in Sulawesi Island. This study uses a quantitative approach with secondary data obtained from the Central Statistics Agency. Based on the results of the panel data analysis using EViews 8.0 program processing tools, the results indicate that in partial local revenue, capital expenditures, labor, small and medium enterprises have significant positive effect on regional economic growth in the Regency/City of the island of Sulawesi. Another  conclusion  of  the  results  in  this  research  are  feasible  estimated regression model is used to explain the economic growth of the Regency/City of the island of Sulawesi.


INFO ARTHA ◽  
2017 ◽  
Vol 3 ◽  
pp. 109-123
Author(s):  
Nur Indah Lestari

This paper examines the effect of government spending on education on growth as an indirect process through enrollment rate, specifically in Indonesia. Using a panel data set of 26 provinces from 2000 to 2010 and applying fixed effect approach of panel regression, we find that government spending on education has a positive relationship with enrollment with one-year lag; also, the data show that enrollment affect growth significantly. By enacting the chain rule, government spending on education has a positive effect in economic growth indirectly. Together, these findings suggest that raise government spending on education can increase enrollment rate and enhance economic growth. 


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