Paper Title :Causes of Income Inequality in Indonesia: A Panel Data Approach for Indonesia among Asian Countries

Author :Caria Ningsih

Article Citation :Caria Ningsih , (2017 ) " Causes of Income Inequality in Indonesia: A Panel Data Approach for Indonesia among Asian Countries " , International Journal of Management and Applied Science (IJMAS) , pp. 25-28, Volume-3,Issue-6

Abstract : This paper exploresthe relationship of income inequality withtax policy, globalization and technological development of Indonesia. The analysis also includes a number of control variables that can be important causes of inequality, that aregrowth of GDP per capita, government expenditure for education, education enrollment, interest rate and inflation. As a part of ASEAN and in order to have a large data, the author estimates by using panel data techniques for ASEAN countries over the period 1995-2014, that focuses an analysis on Indonesia. Overall, the result suggests that the increasing of individual tax rate, FDI and internet access have been responsible for the increasing of income inequality in Indonesia. In the other hand, the raises of corporate tax rate and trade policy seem to have been more favorable to equality. Other factors, including the raising of GDP per capita growth, government expenditure for education, education enrollment and interest rate can be the solution for reducing inequality. Indexterms- Indonesia income inequality, panel data approach among ASEAN

Type : Research paper

Published : Volume-3,Issue-6

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