The Impact of Exports, Unemployment, Human Development, and Farmers’ Terms of Trade on Income Inequality in Indonesia
DOI:
https://doi.org/10.38035/gijea.v4i4.883Keywords:
Income Inequality, Exports, Unemployment Rate, Human Development Index, Farmers’ Terms of TradeAbstract
This study aims to analyze the impact of exports, unemployment rate, human development index, and farmers’ terms of trade on income inequality in Indonesia. Income inequality remains a major issue despite uneven economic growth across regions. This study employs a quantitative approach using panel data covering 33 provinces over the period 2019–2025. The analysis method used is panel data regression, with the fixed effect model selected as the best model based on model selection tests. The results show that the human development index and farmers’ terms of trade have a negative and significant effect on income inequality, while exports and unemployment rate have no significant effect. These findings indicate that improving human capital and farmers’ welfare plays an important role in reducing income inequality. This study contributes to the empirical literature on inequality determinants and highlights the importance of inclusive development through human capability enhancement and the agricultural sector.
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Copyright (c) 2026 Muhammad Rozali, Mohammad Sofyan, Mochamad Ramza Rapier Gussa, Abdul Gofur, Dwiwahjuni Wulandari
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