A sectoral growth-income inequality nexus in Indonesia

Crawford School of Public Policy

Event details

Crawford Research Seminar

Date & time

Friday 03 March 2017


Seminar Room 7, Level 2, JG Crawford Building 132, Lennox Crossing, ANU


Associate Professor Budy P Resosudarmo, Arndt-Corden Department of Economics, Crawford School, ANU.


Llewelyn Hughes

In this seminar Budy Resosudarmo provides evidence of a causal relationship between economic growth in the manufacturing, agriculture and services sectors and income inequality, measured by an income equality variable, using panel data for Indonesian districts and cities over the period 2000 to 2010.

The results show a negative and statistically significant impact of the manufacturing and services share of GDP on income equality; in other words, a positive impact of the manufacturing and services share of GDP on income inequality. The share of agriculture in GDP, however, shows a positive impact on income equality; i.e. a negative impact on income inequality. The effects are robust to the incorporation of education, employment, government spending, credit and quality of government covariates as control variables. Budy P Resosudarmo is the head of the ANU Indonesia Project. He is a development and environmental economist working on the economy-wide impact of economic and environmental policies on household incomes, analysing the impact of fiscal decentralisation policies on local economies, and understanding the political economy of natural resource utilisation.

The Crawford School Research Seminar (CSRS) is a forum for scholars from across Crawford School of Public Policy to share their research and receive input from faculty and doctoral candidates on works-in-progress.

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