THE INFLUENCE OF FISCAL CAPACITY AND THE ECONOMY ON REGIONAL INEQUALITY POST REGENCY/CITY EXPANSION IN THE NIAS ISLANDS

• Main Author: Syaidah Zendrato, Nur
• Format: Theses
• Language: Indonesia
• Subjects: Perencanaan wilayah
• Online Access: https://digilib.itb.ac.id/gdl/view/73893
• Institution: Institut Teknologi Bandung

Different economic development in each region raises the possibility of inequality. Nias Regency, South Nias Regency, North Nias Regency, West Nias Regency, and Gunungsitoli City are the results of the division that occurred in the Nias Islands to improve people's welfare. However, until now these four districts are the poorest areas in North Sumatra Province and are among the underdeveloped areas in Indonesia. This shows that there are economic disparities between districts/cities in the Nias Islands. Therefore, this study aims to analyze economic conditions and the level of regional inequality and see the effect of the Fiscal Capacity Index (IKF) and the regional economy on inequality. The method used is regression analysis of panel time series data using time series data from 2014 – 2021. The results show that the inequality that occurs in the Nias Islands is relatively mild where the highest inequality is in South Nias Regency and the lowest inequality is in South Nias Regency. West Nias although the amount of income is the smallest compared to the others. The Fiscal Capacity Index for the economy (GRDP per capita) has a significant effect on inequality and has a negative impact. Where there is an increase in the Fiscal Capacity Index there is an economy (GRDP per capita) which can reduce regional inequality.