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Abstract
This study has the aims to analyse the relationship between economic agglomeration and economic growth to income inequality that occurs in regional development post-implementation of regional autonomy policy in East Java District / City of Indonesia in the year of 2011-2015. The method of analysis used is Panel Data with Random Effect Model. The result of the research concludes that economic agglomeration has significantly and positively affect on the level of income inequality that occurs in the regional economy. However, economic growth has no significant effect on income inequality in regional economy in East Java Province.
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References
- Badel, Alejandro and Mark Hugget. (2016). Macroeconomics: A Growth Theory Approach, downloaded from http://faculty.georgetown.edu/mh5/class/econ102/macro-book.pdf
- Belussi, Fiorenza and Katia Caldari, (2008). At the Origin of the Industrial District: Alfred Marshall and the Cambridge School, Cambridge Journal of Economics, 33,335-355.
- Boix, Rafael and Vittorio Galletto, (2008). Marshallian Industrial Districts in Spain. Scienze Regionali. Vol 7 (3), Scienze Regionali, Vol. 7, No.3,29-52
- Brulhart, Marius and Federica Sbergami, (2009). Agglomeration and Growth: Cross-Country Evidence, Journal of Urban Economics, 65, 48–63
- Castells, David, (2011). Agglomeration, Inequality and Economic Growth. Working Paper Institute de Recerca en Economia Aplicada Regional I Publica, downloaded from http://www.ub.edu/ubeconomics/wp-content/uploads/2012/02/201114.pdf.
- Dietz, Thomas, Eugene A. Rosa, and Richard York, (2012). Environmentally Efficient Well- Being: Is There a Kuznets Curve? Applied Geography, 32 (1), 21-28
- Frazer, Grath, (2006). Inequality and Development Across and Within Countries, World Development, Vol. 34 (9),1459-1481
- Gardiner, Ben, Ron Martin and Peter Tyler, (2010). Does Spatial Agglomeration Increase National Growth? Some evidence from Europe, Journal of Economic Geography, 1-28
- Geppert, Kurt and Andreas Stephan, (2008). Regional Disparities in the European Union: Convergence and Agglomeration, Regional Science Association International, Wiley Blackwell, Vol. 87(2), Juni, 193-217
- Herzer, Dierk and Sebastian Vollmer, (2012). Inequality and Growth: Evidence from Panel Cointegration, Journal Economic Inequal, Vol. 10, 489-503
- Hsing, Yu, (2005). Economic Growth and Income Inequality: The Case of The US, International Journal of Social Economics, Vol. 32, Issue 7,639-647
- Jagadeesh, Dhanya, (2015). The Impact of Savings in Economic Growth: An Empirical Study Based on Botswana, International Journal of Research in Business Studies and Management, Vol 2 Issue 9, 10 -21. ISSN: 2394-5931.
- Mukhlis, Imam and Timbul Hamonangan Simanjuntak, (2016). The Nexus of Economic Factors and Poverty in the Region’s Economy, International Journal of Management Science, Vol 7 (1), 14-20
- Obradovic, Sasa, Nemanja Lojanica, and Olivera Janković, (2016). The Influence of Economic Growth on Regional Disparities: Empirical evidence from OECD Countries, Zb.Rad.Ekon.Fak.Rij, Vol. 34 (1), 161-186
- Ozdemir, Dicle., (2017). A Post- Keynesian Criticism of the Solow Growth Model, Journal of Economics Business and Management, Vol 5 (3),134-137
- Risso, Adrian W, Lionello F. Punzo, Edgar J. and Sánchez Carrera, (2013). Economic growth and Income Distribution in Mexico, Economic Modelling, 35,708-714
- Risso, W Adrian and Edgar J. Sanchez Carrera, (2012). Inequality and Economic growth in China, Journal of Chinese Economics and Foreign Trade Studies, Vol. 5, Issue 2, 80-90
- Shahbaz, Muhammad, (2010). Income Inequality- Economic Growth and Non-Linearity: A case of Pakistan, International Journal of Social Economics, Vol .37, Issue 8,613-636
- Tian, Ye, (2012). The Effect of Income Inequality on Economic Growth in China, Economics & Business Journal: Inquiries & Perspective, Vol 4 (1), October,150-157
- Tappi, Deborah, (2001). The Neo- Marshallian Industrial District A study on Italian Contributions to Theory and Evidence. Kahlaische Strasse, Germany,1-21
- Tranh, Doan and Nguyen Vu Hoang, (2016). The Model of Economic Growth and Implications for Economic Growth Danang, Proceedings of the International Academic Research Conference on Small & Medium Enterprises, Danang City-Vietnam. 2-4 August, downloaded from http://globalbizresearch.org/IAR16_Vietnam_Conference_2016_Aug/docs/doc/PDF/VSL622.pdf, 1-22
- Trullen, Joan, (2015). Giacomo Becatini and the Marshall’s Method, Investigaciones Regionales-Journal of Regional Research, 32,43-60
- Vu, Ha and Pudarik Mukhopadhaya, (2011). Reassessing the Relationship between Economic Growth and Inequality, A Journal of Applied Economics and Policy, Vol 30 (2), 265-272
- Wahiba, Nasfi Fkili and Malek El Wariemmi, (2014). The Relationship Between Economic Growth and Income Inequality, International Journal of Economics and Financial Issues, Vol. 4 (1),135-143
- www.bps.jatim.go.id
- ------------, (2017). Jawa Timur Dalam Angka, BPS Jawa Timur
References
Badel, Alejandro and Mark Hugget. (2016). Macroeconomics: A Growth Theory Approach, downloaded from http://faculty.georgetown.edu/mh5/class/econ102/macro-book.pdf
Belussi, Fiorenza and Katia Caldari, (2008). At the Origin of the Industrial District: Alfred Marshall and the Cambridge School, Cambridge Journal of Economics, 33,335-355.
Boix, Rafael and Vittorio Galletto, (2008). Marshallian Industrial Districts in Spain. Scienze Regionali. Vol 7 (3), Scienze Regionali, Vol. 7, No.3,29-52
Brulhart, Marius and Federica Sbergami, (2009). Agglomeration and Growth: Cross-Country Evidence, Journal of Urban Economics, 65, 48–63
Castells, David, (2011). Agglomeration, Inequality and Economic Growth. Working Paper Institute de Recerca en Economia Aplicada Regional I Publica, downloaded from http://www.ub.edu/ubeconomics/wp-content/uploads/2012/02/201114.pdf.
Dietz, Thomas, Eugene A. Rosa, and Richard York, (2012). Environmentally Efficient Well- Being: Is There a Kuznets Curve? Applied Geography, 32 (1), 21-28
Frazer, Grath, (2006). Inequality and Development Across and Within Countries, World Development, Vol. 34 (9),1459-1481
Gardiner, Ben, Ron Martin and Peter Tyler, (2010). Does Spatial Agglomeration Increase National Growth? Some evidence from Europe, Journal of Economic Geography, 1-28
Geppert, Kurt and Andreas Stephan, (2008). Regional Disparities in the European Union: Convergence and Agglomeration, Regional Science Association International, Wiley Blackwell, Vol. 87(2), Juni, 193-217
Herzer, Dierk and Sebastian Vollmer, (2012). Inequality and Growth: Evidence from Panel Cointegration, Journal Economic Inequal, Vol. 10, 489-503
Hsing, Yu, (2005). Economic Growth and Income Inequality: The Case of The US, International Journal of Social Economics, Vol. 32, Issue 7,639-647
Jagadeesh, Dhanya, (2015). The Impact of Savings in Economic Growth: An Empirical Study Based on Botswana, International Journal of Research in Business Studies and Management, Vol 2 Issue 9, 10 -21. ISSN: 2394-5931.
Mukhlis, Imam and Timbul Hamonangan Simanjuntak, (2016). The Nexus of Economic Factors and Poverty in the Region’s Economy, International Journal of Management Science, Vol 7 (1), 14-20
Obradovic, Sasa, Nemanja Lojanica, and Olivera Janković, (2016). The Influence of Economic Growth on Regional Disparities: Empirical evidence from OECD Countries, Zb.Rad.Ekon.Fak.Rij, Vol. 34 (1), 161-186
Ozdemir, Dicle., (2017). A Post- Keynesian Criticism of the Solow Growth Model, Journal of Economics Business and Management, Vol 5 (3),134-137
Risso, Adrian W, Lionello F. Punzo, Edgar J. and Sánchez Carrera, (2013). Economic growth and Income Distribution in Mexico, Economic Modelling, 35,708-714
Risso, W Adrian and Edgar J. Sanchez Carrera, (2012). Inequality and Economic growth in China, Journal of Chinese Economics and Foreign Trade Studies, Vol. 5, Issue 2, 80-90
Shahbaz, Muhammad, (2010). Income Inequality- Economic Growth and Non-Linearity: A case of Pakistan, International Journal of Social Economics, Vol .37, Issue 8,613-636
Tian, Ye, (2012). The Effect of Income Inequality on Economic Growth in China, Economics & Business Journal: Inquiries & Perspective, Vol 4 (1), October,150-157
Tappi, Deborah, (2001). The Neo- Marshallian Industrial District A study on Italian Contributions to Theory and Evidence. Kahlaische Strasse, Germany,1-21
Tranh, Doan and Nguyen Vu Hoang, (2016). The Model of Economic Growth and Implications for Economic Growth Danang, Proceedings of the International Academic Research Conference on Small & Medium Enterprises, Danang City-Vietnam. 2-4 August, downloaded from http://globalbizresearch.org/IAR16_Vietnam_Conference_2016_Aug/docs/doc/PDF/VSL622.pdf, 1-22
Trullen, Joan, (2015). Giacomo Becatini and the Marshall’s Method, Investigaciones Regionales-Journal of Regional Research, 32,43-60
Vu, Ha and Pudarik Mukhopadhaya, (2011). Reassessing the Relationship between Economic Growth and Inequality, A Journal of Applied Economics and Policy, Vol 30 (2), 265-272
Wahiba, Nasfi Fkili and Malek El Wariemmi, (2014). The Relationship Between Economic Growth and Income Inequality, International Journal of Economics and Financial Issues, Vol. 4 (1),135-143
www.bps.jatim.go.id
------------, (2017). Jawa Timur Dalam Angka, BPS Jawa Timur