ENRICHING THE SOCIO-ECONOMIC INEQUALITY MODEL BY USING ALTERNATIVE INDICES
ENRICHING THE SOCIO-ECONOMIC INEQUALITY MODEL BY USING ALTERNATIVE INDICES

Summary/Abstract: This study aims to investigate regional socioeconomic inequality (SEI) using alternative indices. Thefruitful indices of the SEI with a different perspectivefrom those found in previous studies are the maincontribution to the literature. Afterward, a dynamic spatialpanel model (GMM) is used to analyze the effect ofhuman capital, economic growth, and spatial distance forthe regions on the SEI. To simplify the ideas, it uses AcehProvince with 23 regencies, as one of the appropriateregions, for this study. Data are obtained from variousgovernment sources for the period 2010-2018. The resultsshow that the indices demonstrate the economic strengthsand weaknesses, economic capability, environmental inputefficiency, and conditional weighted SEI of the regions’human capital. These indices explain that human capitalhas a critical role on the effect of natural resources,government income, conflict, and natural disasters on theSEI. Besides, the spatial distance of regions also plays animportant role in reducing the SEI of regions. Therefore,the regional development policies should underline theimportant role of those in supporting the quality of theSEI of the regions. For future research, it suggestsinvolving a spatial distance of regions in determining theSEI of a region.

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