Analysis of the Determinants of Income Inequality Regencies and Cities in Bali Province

Komang Tritya Purnama Dewi; Mohammad Wahed

doi:10.55927/ijbae.v4i4.227

Authors

Komang Tritya Purnama Dewi Universitas Pembangunan Nasional “Veteran” Jawa Timur
Mohammad Wahed Universitas Pembangunan Nasional “Veteran” Jawa Timur

DOI:

https://doi.org/10.55927/ijbae.v4i4.227

Keywords:

Minimum Wage, Labor Force Participation Rate, Foreign Investment, Number of Poor People, Income Inequality

Abstract

Income inequality remains a major challenge in regional economic development, including in Bali Province, which is widely known as an international tourist destination. This research aims to examine the variables contributing to income disparities across regencies and cities in Bali Province. The independent variables analyzed include the minimum wage, labor force participation rate, foreign investment, and the number of poor people. A quantitative approach is applied using panel data regression with a fixed effect model over the period from 2014 to 2023. The analysis results indicate that the minimum wage variable has a negative and significant effect, the labor force participation rate variable has a negative but insignificant effect, the foreign investment variable shows a positive but insignificant relationship, while number of poor people variable has a positive and significant effect. These results emphasize the importance of implementing development strategies that focus not only on economic expansion but also on ensuring fairness and long-term sustainability.

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