Factors Affecting Income Inequality in Indonesia

Alvin Ong Yi Jun and Doris Padmini Selvaratnam
Additional contact information
Alvin Ong Yi Jun: Faculty of Economics and Management
Doris Padmini Selvaratnam: University Kebangsaan Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 6, 5759-5774

Abstract: In comparison to other Southeast Asian countries, Indonesia’s income is growing rapidly. The four richest Indonesians now surpasses that of 100 million of their poorest citizens. In terms of income inequality, Indonesia is now ranked sixth in the world. Therefore, the purposes of this study is to investigate factors affecting income inequality in Indonesia from 1994 to 2023 using time series regression analysis with OLS method. Foreign direct investment (FDI) inflows, population growth, and corruption are major factors leads income inequality while unemployment rate is not significant and school enrollment tertiary have multicollinearity problem. The findings show that foreign direct investment (FDI) inflows, population growth, and corruption have a positive and significant relationship between income inequality. In order to address income inequality, foreign direct investment (FDI) inflows, population growth, and corruption should be controlled.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... ssue-6/5759-5774.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... uality-in-indonesia/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:issue-6:p:5759-5774

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().