Analysis of Income Inequality and Its Effect on Poverty Through Economic Growth: Case of Talaud Islands District

摘要

Economic growth is a continuous process of increasing output per capita in the long run. Economic growth is one indicator of development success, the main source of which is improving people's living standards. Therefore the higher economic growth is usually the higher the welfare of the community. The success or failure of development programs in developing countries is often judged by the high and low levels of growth in national output and income. High economic growth accompanied by income distribution is the goal of each region. The economy is considered to experience growth if all real service fees for the use of production factors in a certain year are greater than in the previous year. In other words the economy is said to experience growth if the real income of the community in a given year is greater than the real income of the community in the previous year. Economic growth shows the extent to which economic activity will generate additional community income in a given period. Because economic activity is basically a process of using factors of production to produce output, this process will in turn produce a flow of services to factors of production owned by the community, with economic growth, it is expected that people's income as owners of factors of production will also increase.