Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

Income Inequality in Sulawesi Island: Evaluating Role of GRDP per Capita and Human Development Index

Authors
Sukmatica Slamet1, *, Nursin Nursini2, Fatmawati Fatmawati2, Sabir Sabir2
1Economic Doctoral Program Student, Postgraduate Faculty of Economics and Business, Hasanuddin University, Makassar, Indonesia
2Faculty of Economics and Business, Hasnuddin University, Makassar, Indonesia
*Corresponding author. Email: slamets22a@student.unhas.ac.id
Corresponding Author
Sukmatica Slamet
Available Online 30 July 2025.
DOI
10.2991/978-94-6463-758-8_16How to use a DOI?
Keywords
Income Inequality; GRDP per capita; HDI; Gini Ratio
Abstract

This study comprehensively analyzes the effect of GRDP per capita and Human Development Index (HDI) on income inequality in six provinces in Sulawesi Island during the period 2010-2023, using a panel data approach with the Random Effect Model (REM) method. The results show that GRDP per capita has a negative and significant effect on income inequality, where an increase in GRDP per capita correlates with a decrease in the gini ratio by 0.33%. In contrast, HDI has a positive and significant effect, where each increase in HDI causes an increase in income inequality by 1.204%. With a coefficient of determination (R2) of 41.15%, this study shows that the combination of GRDP per capita and HDI contributes significantly to the variation in income inequality in the study areas. This finding underscores the importance of policy strategies that focus on economic diversification and improving access to education and equitable health services as concrete steps to reduce income inequality in Sulawesi Island.

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_16How to use a DOI?
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.

Cite this article

TY  - CONF
AU  - Sukmatica Slamet
AU  - Nursin Nursini
AU  - Fatmawati Fatmawati
AU  - Sabir Sabir
PY  - 2025
DA  - 2025/07/30
TI  - Income Inequality in Sulawesi Island: Evaluating Role of GRDP per Capita and Human Development Index
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 164
EP  - 177
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_16
DO  - 10.2991/978-94-6463-758-8_16
ID  - Slamet2025
ER  -