ANALYSIS OF THE INFLUENCE OF BASIC INFRASTUCTURE AVAILIBILITY ON INCOME INEQUALITY IN JAVA

Authors

  • Muhammad Addif Rayza Nabhaani Universitas Brawijaya
  • Bahtiar Fitanto Ekonomi Pembangunan, Universitas Brawijaya

DOI:

https://doi.org/10.36706/jp.v12i2.113

Keywords:

Infrastruktur Dasar, Ketimpangan Pendapatan, Pulau Jawa, Data Panel, FEM

Abstract

Income inequality remains a structural challenge in Java Island despite its advanced infrastructure, a phenomenon known as the "Java Paradox". This study aims to analyze the influence of basic infrastructure, comprising clean water, electricity, and roads, on income inequality across 5 provinces in Java from 2014 to 2024. This study employs a quantitative approach using panel data consisting of 55 observations. The analytical method used is panel data regression with the Fixed Effect Model (FEM) approach and White Period correction to address autocorrelation issues. The results show that electricity infrastructure has a negative and significant effect on income inequality, indicating that increased electricity access effectively drives productive economic activities for low-income households. Conversely, road and clean water infrastructure were found to have a positive but insignificant effect. These findings suggest the presence of a spatial mismatch phenomenon where road development benefits have not been evenly distributed. Policy implications suggest prioritizing electricity quality as a key instrument for inclusive growth and re-evaluating road development strategies to ensure a greater impact on economic equity.

References

Ali, I., & Zhuang, J. (2007). Inclusive Growth toward a Prosperous Asia: Policy Implications (No. 97; ERD Working Paper Series). Anthem Press. https://doi.org/10.7135/UPO9780857288066

Baltagi, B. H. (2005). Econometric Analysis of Panel Data. In Rohn Wiley. John Wiley & Sons, Ltd. https://library.wbi.ac.id/repository/27.pdf

Banerjee, A., Duflo, E., & Qian, N. (2020). On the road: Access to transportation infrastructure and economic growth in China. Journal of Development Economics, 145, 102442. https://doi.org/https://doi.org/10.1016/j.jdeveco.2020.102442

Calderón, C., & Servén, L. (2010). Infrastructure and Economic Development in Sub-Saharan Africa. Journal of African Economies, 19(suppl_1), i13–i87. https://doi.org/10.1093/jae/ejp022

Calderón, C., & Servén, L. (2014). Infrastructure, growth, and inequality: An overview. World Bank Policy Research Working Paper, 7034. http://documents.worldbank.org/curated/en/322761468183548075

Dinkelman, T. (2011). The Effects of Rural Electrification on Employment: New Evidence from South Africa. American Economic Review, 101(7), 3078–3108. https://doi.org/10.1257/aer.101.7.3078

Dumas, C., & Játiva, X. (2025). Better Roads, Better Off? Evidence on Upgrading Roads in Tanzania. The World Bank Economic Review, 39(1), 104–123. https://doi.org/10.1093/wber/lhae017

Glejser, H. (1969). A New Test for Heteroskedasticity. Journal of the American Statistical Association, 64(325), 316–323. https://doi.org/10.1080/01621459.1969.10500976

Gujarati, D. N. (2009). Basics Econometrics (Fifth Edit). McGraw-Hill. https://ucanapplym.s3.ap-south-1.amazonaws.com/RGU/notifications/E_learning/0nline_study/Basic-Econometrics-5th-Ed-Gujarati-and-P.pdf

Ianchovichina, E., & Lundstrom, S. (2009). Inclusive Growth Analytics: Framework and Application (No. 4851; World Bank Policy Research Working Paper, Issue March).

Jayanthi, R. (2021). The Effect of Electricity Development in Indonesia on Poverty and Income Inequality. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 22(1 SE-Articles), 104–116. https://doi.org/10.23917/jep.v22i1.12076

Kain, J. F. (1968). Housing Segregation, Negro Employment, and Metropolitan Decentralization. The Quarterly Journal of Economics, 82(2), 175–197. https://doi.org/10.2307/1885893

Kwan, M.-P. (2012). The Uncertain Geographic Context Problem. Annals of the Association of American Geographers, 102(5), 958–968. https://doi.org/10.1080/00045608.2012.687349

Makmuri, A. (2017). Infrastructure and inequality: An empirical evidence from Indonesia. Economic Journal of Emerging Markets, 9(1 SE-Articles), 29–39. https://doi.org/10.20885/ejem.vol9.iss1.art4

Nurdina, W. (2021). Infrastructure and Income Inequality in Indonesia: 2009-2017. The Journal of Indonesia Sustainable Development Planning, 2, 129–144. https://doi.org/10.46456/jisdep.v2i2.132

Sugiyono. (2016). METODE PENELITIAN KUANTITATIF, KUALITATIF DAN R&D. Alfabeta. https://digi-lib.stekom.ac.id/assets/dokumen/ebook/feb_35efe6a47227d6031a75569c2f3f39d44fe2db43_1652079047.pdf

Sun, Q., Li, W., & Zhou, Q. (2019). Rural Access Index: A global study. https://doi.org/10.48550/arXiv.2309.00505

Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data (Second edi). MIT Press.

Downloads

Published

2026-07-24

How to Cite

Muhammad Addif Rayza Nabhaani, & Fitanto, B. (2026). ANALYSIS OF THE INFLUENCE OF BASIC INFRASTUCTURE AVAILIBILITY ON INCOME INEQUALITY IN JAVA. Jurnal PROFIT: Kajian Pendidikan Ekonomi Dan Ilmu Ekonomi, 12(2), 152–162. https://doi.org/10.36706/jp.v12i2.113

Similar Articles

<< < 4 5 6 7 8 9 10 11 12 13 > >> 

You may also start an advanced similarity search for this article.