The Effect Of HDI, Minimum Wage And Regional Income On Inclusive Economic Development Index In Central Java, 2018 – 2021

Maudi Nurdiana, Muhammad Farid Alfarisy, Suharno Suharno

Abstract


During the Covid-19 pandemic, Central Java was still able to increase its inclusive Economic Development Index score. But nationally, Central Java's ranking has declined. In addition, in the first pillar, Central Java's IPEI is below the province with an absolute IPEI score, while other provinces are below Central Java. The purpose of this research is to see the effect of HDI, minimum wage, General Allocation Fund (GAF), Local Own-source Revenue and village funds for IEDI in Central Java in 2018-2021. The locations that are the object of this research are every district/city in Central Java. The type of data used in this study is secondary data so that data collection is carried out by other parties by recording existing data. The analytical method used is panel data regression analysis. The results of this study show that HDI and GAF have a positive and significant effect on IEDI while minimum wage, Local Own-source Revenue, and village funds have no effect on IEDI for each Regency/City in Central Java in 2018-2021. Taken together the variables HDI, minimum wage, General Allocation Fund (GAF), Local Own-source Revenue and village funds affect for IEDI in Central Java in 2018-2021.

 

Keywords: IEDI, HDI, General Allocation Fund, Minimum Wage, Local Own-source Revenue, village funds.


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