PRESCRIPTIVE ON THE IMPACT OF ECONOMIC GROWTH, FINANCIAL DEVELOPMENT AND INCOME INEQUALITY IN INDONESIA
DOI:
https://doi.org/10.19184/jek.v9i1.46422Keywords:
Economic Growth, Financial Development, Income Inequality, IndonesiaAbstract
Income inequality dominates the economies of developed and developing countries. The effectiveness of economic growth and financial sector development is considered capable of encouraging the economy which will ultimately bring prosperity to society. This research aims to look at the impact of economic growth and financial development on income inequality in Indonesia. The method used is a descriptive method. This research uses domestic credit to the private sector carried out by banking, foreign investment (FDI) and M2; GDP per capita growth as a measure of economic growth and the Gini index as a measure of income inequality. The research results show that economic growth and financial development are growing in line with positive growth performance, even though income inequality rates fluctuate low.
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