Development Inclusion on the urban-rural Income Gap based in Indonesia : spatial panel model optimization
Irfan^(a,b,*), Apridar^b, &#12310-Abd.Jamal&#12311-^b, &#12310-M.Nasir&#12311-^b

STIE LHOKSEUMAWE, UNIVERSITAS SYIAH KUALA

Abstract

Using a spatial panel data model, this article empirically investigates the correlation between development inclusion and the urban-rural income gap. Considering a spatial panel data model, this article empirically investigates the correlation between development inclusion and the urban-rural income gap spatial factors. The development inclusion index narrows the income gap between urban and rural areas. The findings of an additional dynamic panel model indicate that an increase in the Human Development Index and urbanization corresponds to a reduction in the urban-rural income gap. Furthermore, it is anticipated that the national strategic policy of relocating the capital of Indonesia from Java to Kalimantan will mitigate the pace of urbanization and promote equitable development in the country.

Keywords: Inclusion Development, Urban-Rural, Income Inequality, spatial panel

Topic: Social Sciences and Humanities