Analysis of the Impact of Sectoral Growth Rates on Income Inequality in Indonesia

Alpin Putra Setiawan, Sahwa Fiilaily Ramadlana

Abstract


Income inequality remains one of the major issues in the economy, particularly in developing countries such as Indonesia. According to several studies, income inequality is closely related to sectoral growth. This study focuses on three sectors that contribute the most to Indonesia’s Gross Domestic Product (GDP), namely the industrial sector, the trade sector, and the agricultural sector, while also examining the role of the government in both sectoral growth and income inequality. This research is conducted using a literature review method by selecting relevant journal articles from various sources. The findings reveal that the agricultural sector has the most stable influence in reducing income inequality, whereas the trade and industrial sectors show more complex results. Additionally, the government plays a significant role in driving sectoral growth as well as influencing income inequality.


Keywords


Inequality; Income; Growth; Sectoral; Industry; Trade; Agriculture

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References


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DOI: https://doi.org/10.17509/jpei.v7i1.77960

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