FACTORS INFLUENCING REGENCY/CITY ECONOMIC INEQUALITY IN JAMBI PROVINCE 2015-2018

Abstract

Purposes: This research aims to analyze the influence of Agglomeration, Labor and Investment on Regency/City Economic Inequality in Jambi Province 2015-2018.

Methods: The analytical method used in this research is panel data regression for the 2015-2018 period sourced from the Jambi Central Statistics Agency.

Findings: The results of data analysis show that among the three agglomeration variables (X1) has a sig value. (0.040) < (0.05), then it partially has a significant effect on economic inequality in Jambi Province in 2015-2018. The Labor variable (X2) has a sig value. (0.8846) (0.05), then partially it has no significant effect on economic inequality in Jambi Province in 2015-2018. Investment (X3) Investment (X3) has a sig value. (0.407) (0.05), then partially it has no significant effect on economic inequality in Jambi Province in 2015-2018. Simultaneously obtain a calculated F value of 4.460 with a Probability value (Prob F-statistic) of 0.000. Because the probability value is 0.000 < 0.05 (α) and F count (358.6774) > F table (2.78), it can be concluded that all independent variables, namely agglomeration, number of workers, investment together have a significant effect on Economic inequality in Jambi Province from 2015 to 2018.

Practical Implication: Based on the coefficient of determination value, the independent variables in the equation, namely agglomeration, labor and investment, together influence 65.9% of economic inequality in Jambi Province in 2015-2018, while the remaining 24.1% is explained by factors -other factors outside the model.

Originality/ Novelty:  No one has researched and found the factors that influence district/city economic inequality in Jambi Province in 2015-2018