Contribution Of Physical Infrastructure Development To Income Inequality In South Sulawesi

Djoko Indra Adhy, Nurul Anwar

Abstract


This study analyses the contribution of physical infrastructure development to income inequality in South Sulawesi during the period 2015-2023. Infrastructure development is one of the important strategies implemented by the Indonesian government to boost economic growth and achieve equitable welfare. Using secondary data from the Central Bureau of Statistics (BPS) of South Sulawesi, this study examines the relationship between physical infrastructure conditions such as roads, sanitation services, and income inequality measured using the Gini Index. The panel regression analysis method was employed to ascertain the impact of these variables on income distribution. The findings indicate that enhancements in road conditions and sanitation services have a pronounced effect in reducing income inequality. In particular, sanitation services have the most significant impact in reducing inequality. This study concludes that improvements in physical infrastructure can play a pivotal role in achieving more equitable income distribution and enhancing people's welfare in South Sulawesi.

Keywords: Physical Infrastructure, Income Inequality, Gini Index, Panel Regression, South Sulawesi


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References


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