Analysis of Economic Development Disparity across Regencies in Aceh, Indonesia

摘要

This study empirically explores the influences of poverty and per capita income on inequality of economic development across 23 regencies in Aceh Indonesia over the period 2012-2016. To measure the inequality of economic development, the classical typology method of Williamson Index and Theil Index are adopted. Meanwhile, the panel multiple regression is used to investigate the influences of poverty and per capita income on inequality of economic development in the region. The study is documented that the level of poverty did not affect the imbalance of economic development, while the per capita income positively affected the inequality of economic development. This finding implied that to further reduce imbalance of economic development across the regencies, the government should distribute a just income so that all citizens could equally enjoy it.