Do Industrial Agglomeration and Investment Shrink Regional Inequality?

Authors

  • Farida Rahmawati Faculty of Economics, Universitas Negeri Malang, Indonesia
  • Fitriani Romziatin Faculty of Economics, Universitas Negeri Malang, Indonesia

DOI:

https://doi.org/10.21009/JPEB.008.2.4

Keywords:

Economic growth, Industrial agglomeration, Investment

Abstract

An ideal economy that is enhancing the welfare of society is the primary goal of a Nation. However, prosperity and economic development are distributed adequately in each region as well as in East Java. Some regions could develop faster instead of other regions that lead to a disparity between regions in the regency/city of East Java Province. For this reason, this research comprehensively aims to analyse how the impact of industrial agglomeration and regional inequality in East Java. In addition, this study also involves other variables, namely investment and economic growth. The data of the study were obtained from Statistics Indonesia and the Investment Office of East Java during the period 2014 to 2018. The findings indicate that agglomeration provides a key role in inequality in the East Java region. Furthermore, investment has a negative influence on regional inequality, while economic growth positively influences regional inequality in East Java.

 

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Published

2020-04-13

How to Cite

Rahmawati, F., & Romziatin, F. (2020). Do Industrial Agglomeration and Investment Shrink Regional Inequality? . Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB), 8(2), 119–126. https://doi.org/10.21009/JPEB.008.2.4

Issue

Vol. 8 No. 2 (2020): Jurnal Pendidikan Ekonomi & Bisnis (DOAJ & SINTA 2 Indexed)

Section

Articles

License

Articles in Jurnal Pendidikan Ekonomi & Bisnis are Open Access articles published under the Creative Commons CC BY-NC-SA License  This license permits use, distribution and reproduction in any medium for non-commercial purposes only, provided the original work and source is properly cited. Any derivative of the original must be distributed under the same license as the original.