Template-type: ReDIF-Paper 1.0
Author-Name: Perdamen Sagala
Author-Name-First: Perdamen
Author-Name-Last: Sagala
Author-Email: perdamen@iuj.ac.jp
Author-Workplace-Name: International University of University
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Author-Name: Takahiro Akita
Author-Name-First: Takahiro
Author-Name-Last: Akita
Author-Email: akita@iuj.ac.jp
Author-Workplace-Name: International University of University
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Author-Name: Arief Anshori Yusuf
Author-Name-First: Arief
Author-Name-Last: Yusuf
Author-Email: arief.yusuf@fe.unpad.ac.id
Author-Workplace-Name: University of Padjadjaran, Indonesia
Author-Workplace-Homepage: http://www.unpad.ac.id/en/
Title: Urbanization and Expenditure Inequality in Indonesia: Testing the Kuznets Hypothesis with Provincial Panel Data
Abstract: Focusing on Indonesia, this study analyzes the relationship between inequality and the process of urbanization. It performs a panel data regression analysis to test the Kuznets inverted-U hypothesis for urbanization based on a provincial panel data set of 33 provinces over the period 2000-2009, constructed by using the core National Socio-economic Survey (core Susenas). Our results support the Kuznets inverted-U hypothesis, whether the Gini coefficient or the Theil indices are used as a measure of inequality. According to our estimates, expenditure inequality would reach the peak at an urbanization rate of around 46-50%. Since the 2010 urbanization rate is 50%, this indicates that expenditure inequality has already attained the peak value. Thus, further urbanization would decrease expenditure inequality, but all other things being equal.
Classification-JEL: O18, R11
Length: 22 pages
Creation-Date: 2013-09
Number: EMS_2013_20
File-URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2013_20.pdf
File-Format: Application/pdf
File-Function: First version, 2013
File-Size: 598KB
Keywords: urbanization, expenditure inequality, Kuznets hypothesis, panel data regression, Indonesia
Handle: RePEc:iuj:wpaper:EMS_2013_20