Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia

This study aims to examine the determinants of income inequality and to map the performance of each province based on the interaction among variables before and during the Covid-19 pandemic. It employs panel data regression analysis and applies the IPA quadrant method for two observation periods, 20...

Full description

Saved in:
Bibliographic Details
Main Authors: Arif Rahman, Sukma Hayati Hakim, Nurmala Fitri
Format: Article
Language:en
Published: Penerbit Universiti Kebangsaan Malaysia 2025
Online Access:http://journalarticle.ukm.my/26573/1/6.pdf
http://journalarticle.ukm.my/26573/
https://www.ukm.my/jem/issue/v59i2/
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1858061968887250944
author Arif Rahman,
Sukma Hayati Hakim,
Nurmala Fitri,
author_facet Arif Rahman,
Sukma Hayati Hakim,
Nurmala Fitri,
author_sort Arif Rahman,
building Tun Sri Lanang Library
collection Institutional Repository
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
continent Asia
country Malaysia
description This study aims to examine the determinants of income inequality and to map the performance of each province based on the interaction among variables before and during the Covid-19 pandemic. It employs panel data regression analysis and applies the IPA quadrant method for two observation periods, 2015-2019 and 2020-2022. Data were sourced from the Central Bureau of Statistics and the Ministry of Environment. The findings suggest that improvements in democracy, environmental quality, and real GRDP per capita can help reduce income inequality, whereas the industrial sector appears to exacerbate it. Real output per capita exerts the strongest influence in reducing inequality. The quadrant analysis results show that Aceh Province experienced worsening inequality performance compared to the pre-pandemic period, while inequality in other provinces has generally stabilised. No high-income province was found to have low inequality status. Democracy performance across Sumatera Island was more volatile. In the industrial sector, only North Sumatra recorded weaker performance. Careful fiscal, monetary, and microeconomic policy consideration are thus required, especially regarding real output per capita growth and industrial sector expansion to prevent further widening of the income gap.
format Article
id my-ukm.journal.26573
institution Universiti Kebangsaan Malaysia
language en
publishDate 2025
publisher Penerbit Universiti Kebangsaan Malaysia
record_format eprints
spelling my-ukm.journal.265732026-02-25T01:58:13Z http://journalarticle.ukm.my/26573/ Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia Arif Rahman, Sukma Hayati Hakim, Nurmala Fitri, This study aims to examine the determinants of income inequality and to map the performance of each province based on the interaction among variables before and during the Covid-19 pandemic. It employs panel data regression analysis and applies the IPA quadrant method for two observation periods, 2015-2019 and 2020-2022. Data were sourced from the Central Bureau of Statistics and the Ministry of Environment. The findings suggest that improvements in democracy, environmental quality, and real GRDP per capita can help reduce income inequality, whereas the industrial sector appears to exacerbate it. Real output per capita exerts the strongest influence in reducing inequality. The quadrant analysis results show that Aceh Province experienced worsening inequality performance compared to the pre-pandemic period, while inequality in other provinces has generally stabilised. No high-income province was found to have low inequality status. Democracy performance across Sumatera Island was more volatile. In the industrial sector, only North Sumatra recorded weaker performance. Careful fiscal, monetary, and microeconomic policy consideration are thus required, especially regarding real output per capita growth and industrial sector expansion to prevent further widening of the income gap. Penerbit Universiti Kebangsaan Malaysia 2025 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/26573/1/6.pdf Arif Rahman, and Sukma Hayati Hakim, and Nurmala Fitri, (2025) Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia. Jurnal Ekonomi Malaysia, 59 (2). pp. 1-15. ISSN 0127-1962 https://www.ukm.my/jem/issue/v59i2/
spellingShingle Arif Rahman,
Sukma Hayati Hakim,
Nurmala Fitri,
Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia
title Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia
title_full Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia
title_fullStr Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia
title_full_unstemmed Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia
title_short Determinants and performance mapping of income inequality before and during pandemic Covid-19 in Sumatra, Indonesia
title_sort determinants and performance mapping of income inequality before and during pandemic covid-19 in sumatra, indonesia
url http://journalarticle.ukm.my/26573/1/6.pdf
http://journalarticle.ukm.my/26573/
https://www.ukm.my/jem/issue/v59i2/
url_provider http://journalarticle.ukm.my/