Income Inequality Amidst Economic Growth: A Democratic Intervention Analysis in Indonesia’s Urban Context

Rahmat Arsyad; Basri Hasanuddin; Agussalim Agussalim; Sanusi Fattah

doi:10.2991/978-94-6463-758-8_9

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Income Inequality Amidst Economic Growth: A Democratic Intervention Analysis in Indonesia’s Urban Context

Authors

Rahmat Arsyad¹^{, *}, Basri Hasanuddin², Agussalim Agussalim², Sanusi Fattah²

¹Wira Bhakti University, Makassar, South Sulawesi, 90222, Indonesia

²Hasanuddin University, Makassar, South Sulawesi, 90245, Indonesia

^*Corresponding author. Email: arsyadr22a@student.unhas.ac.id

Corresponding Author

Rahmat Arsyad

Available Online 30 July 2025.

DOI: 10.2991/978-94-6463-758-8_9 How to use a DOI?
Keywords: Income Inequality; Economic Growth; Democracy; Moderated Regression Analysis (MRA)
Abstract: Income inequality remains a pressing issue in Indonesia, particularly in urban areas, despite notable economic growth. This study examines how democracy moderates the relationship between economic growth and income inequality in Indonesia’s urban context. Using panel data from 33 provinces between 2014 and 2023, the research applies Moderated Regression Analysis (MRA) to assess the interaction of Economic Growth (X), Income Inequality (Y), and Democracy (Z). The results show that while economic growth alone does not significantly reduce income inequality, democracy plays a crucial role in moderating this relationship, enhancing the positive impact of growth on reducing inequality. This suggests that higher levels of democracy can make economic growth more inclusive by distributing its benefits more equitably. The findings emphasize the importance of maintaining strong democratic institutions to address the challenges of wealth disparity in rapidly growing economies like Indonesia. This study provides actionable insights for policymakers aiming to reduce inequality through more democratic governance frameworks.
Copyright: © 2025 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
Series: Advances in Economics, Business and Management Research
Publication Date: 30 July 2025
ISBN: 978-94-6463-758-8
ISSN: 2352-5428
DOI: 10.2991/978-94-6463-758-8_9 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Rahmat Arsyad
AU  - Basri Hasanuddin
AU  - Agussalim Agussalim
AU  - Sanusi Fattah
PY  - 2025
DA  - 2025/07/30
TI  - Income Inequality Amidst Economic Growth: A Democratic Intervention Analysis in Indonesia’s Urban Context
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 97
EP  - 104
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_9
DO  - 10.2991/978-94-6463-758-8_9
ID  - Arsyad2025
ER  -

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