ANALYSIS OF FACTORS THAT INFLUENCE THE INTERDITION OF DISTRICT / CITY IN THE PROVINCE NORTH SUMATRA Muhammad Yulhelmy Isra, Eko Wahyu Nugrahadi, Muhammad Yusuf
Postgraduate Program Universitas Negeri Medan
Abstract
This study aims to determine the effect of the Human Development Index (HDI), Economic Growth, Poor Population, Government Expenditures on Health Education and Government Expenditures on inequality between regions in North Sumatra. The analytical method used in this study is a descriptive analysis method and also the method of multiple regression analysis with the Fixed Effect method using panel data from 33 districts/cities from 2012-2016. The data of this study are secondary data originating from the Central Sumatra Provincial Statistics Agency and the Directorate General of Fiscal Balance, the Ministry of Finance which was downloaded through the official website of each institution. The results showed that economic growth, the number of poor people, and government expenditure in the health sector had a positive and significant effect on income inequality in North Sumatra. While government spending in education has a negative and significant effect on income inequality in North Sumatra. The variable Human Development Index (HDI) has a negative and insignificant effect on income inequality in the North Sumatra region. The estimation results also show that the variation in the change in the value of the non-inequality-free variable can be explained simultaneously by the independent variables namely the variables of HDI, PE, PO, DP, and DK of 99.42% while the remaining 0.58% is explained by factors others that are not included in the model.
Keywords: Inequality, HDI, Economic Growth, Poor Population, Government Expenditures in Education and Health
Topic: Economics, Business and Management Education
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