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Economic growth and income distribution: the experience of Indonesia

The economy of Indonesia had come into the social and the political crisis since the second period in 1997. A number of social riots struke several towns in Indonesia. Consequently, the stability of the state was disturbed. It caused the efforts to economy recovery to be more and more difficult to d...

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Main Author: Jhon Tafbu Ritonga,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2005
Online Access:http://journalarticle.ukm.my/7797/1/1637-3090-1-SM.pdf
http://journalarticle.ukm.my/7797/
http://www.ukm.my/penerbit/jem.htm
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spelling my-ukm.journal.77972016-12-14T06:45:13Z http://journalarticle.ukm.my/7797/ Economic growth and income distribution: the experience of Indonesia Jhon Tafbu Ritonga, The economy of Indonesia had come into the social and the political crisis since the second period in 1997. A number of social riots struke several towns in Indonesia. Consequently, the stability of the state was disturbed. It caused the efforts to economy recovery to be more and more difficult to do. Many others pointed out that the social riots were caused by inequality of economy. The purpose of this study is to find out the income inequality stage in Indonesia and wether the good income distribution inequality can ensure the stability of the state. The measurement method for income distribution used in this study is Gini coeficient and World Bank's criteria. The results of the study shows that the economic growth rose significantly during New Order (sociopolitical in Indonesia). While, the income distribution based on Gini Ratio and World Bank's criteria imply that Indonesia is included the category of low inequality. However, in thcstudy's period is found the distortion of Kuznets hypothesis and Ahluwalia's analysis on the change forms of income distribution. The low inequality doesn't reflect to another inequality situation such as poverty and absolute inequality. Therefore, the rising of economic growth and the low inequalit) during the study's period doesn't guarantee the stablity of politic. The studies about the income distribution shouldn't use macroeconomics approach only, but also other approaches like microeconomics aspects. Penerbit Universiti Kebangsaan Malaysia 2005 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7797/1/1637-3090-1-SM.pdf Jhon Tafbu Ritonga, (2005) Economic growth and income distribution: the experience of Indonesia. Jurnal Ekonomi Malaysia, 39 . pp. 89-105. ISSN 0127-1962 http://www.ukm.my/penerbit/jem.htm
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The economy of Indonesia had come into the social and the political crisis since the second period in 1997. A number of social riots struke several towns in Indonesia. Consequently, the stability of the state was disturbed. It caused the efforts to economy recovery to be more and more difficult to do. Many others pointed out that the social riots were caused by inequality of economy. The purpose of this study is to find out the income inequality stage in Indonesia and wether the good income distribution inequality can ensure the stability of the state. The measurement method for income distribution used in this study is Gini coeficient and World Bank's criteria. The results of the study shows that the economic growth rose significantly during New Order (sociopolitical in Indonesia). While, the income distribution based on Gini Ratio and World Bank's criteria imply that Indonesia is included the category of low inequality. However, in thcstudy's period is found the distortion of Kuznets hypothesis and Ahluwalia's analysis on the change forms of income distribution. The low inequality doesn't reflect to another inequality situation such as poverty and absolute inequality. Therefore, the rising of economic growth and the low inequalit) during the study's period doesn't guarantee the stablity of politic. The studies about the income distribution shouldn't use macroeconomics approach only, but also other approaches like microeconomics aspects.
format Article
author Jhon Tafbu Ritonga,
spellingShingle Jhon Tafbu Ritonga,
Economic growth and income distribution: the experience of Indonesia
author_facet Jhon Tafbu Ritonga,
author_sort Jhon Tafbu Ritonga,
title Economic growth and income distribution: the experience of Indonesia
title_short Economic growth and income distribution: the experience of Indonesia
title_full Economic growth and income distribution: the experience of Indonesia
title_fullStr Economic growth and income distribution: the experience of Indonesia
title_full_unstemmed Economic growth and income distribution: the experience of Indonesia
title_sort economic growth and income distribution: the experience of indonesia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2005
url http://journalarticle.ukm.my/7797/1/1637-3090-1-SM.pdf
http://journalarticle.ukm.my/7797/
http://www.ukm.my/penerbit/jem.htm
_version_ 1643737250322710528
score 13.211869

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