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Growth and Inequality of Inter-Regional Economic Development in Aceh Province, Indonesia

DOI : https://doi.org/10.36349/easjebm.2020.v03i07.004
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This study is aimed to analyze the growth and inequality of economic development among 23 cities of Aceh Province in the period 2012 to 2016 and identify economic growth among 23 cities in Aceh Province that significantly affected the inequality. The data used by researchers are secondary data consisting of sequential data from 2012 to 2016 obtained from the Central Bureau of Statistics and Bank of Indonesia in Aceh. The results of this study concluded that the economic development inequality in Aceh as measured by the Entrophy Theil Index in the period 2012 to 2016 tended to relatively increased. Based on calculations and graphs of trendlines, it is known that the impact of high economic growth might lower economic development imbalance and activates the distribution of economic growth in an area. Meanwhile, if economic growth is low the economic development imbalance will be higher and inequality of economic growth in a region. So that for the overall trendine results 23 cities in Aceh Province are negative and the value of R2 = 0.087 percent, is relatively weak, because the independent variable cannot explain 0.087 percent of the variation in the dependent variable. Based on these findings, the government policy of Aceh Province needs to be taken to reduce the imbalance of economic development that makes an inequality in economic growth by increasing human resources (HR) and the source of capital of an area.

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Dr. Afroza Begum

Lecturer, Dept. of Pharmacology and Therapeutics, Shaheed Monsur Ali Medical College & Hospital, Uttara, Dhaka-1230, Bangladesh

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