ANALYSIS OF ECONOMIC GROWTH AND INEQUALITY BASED ON ECONOMIC GEOGRAPHIC REVIEW IN EAST NUSA TENGGARA

Agus A. Nalle and Hamza H. Wulakada

Abstract:

The geographical condition of NTT of which characteristic is archipelagic dry land and the location of its astronomy is at the southernmost gate of central Indonesia is becoming an international concern because it is directly adjacent to RDTL and Australia. The distribution of 22 districts / cities with various socio-cultural characteristics and the potential of the region is likely to be the cause of economic imbalances. This study aims to reveal economic growth in several districts / cities in NTT Province which is compared to the imbalance of economic development between districts. The problem solving approach and achieving the goals were conducted by descriptive and secondary data analysis, which is calculating several indicators such as the rate of economic growth and the rate of poverty reduction; regional economic growth indicators based on klasen typology and theil entropy index calculation as a proxy for the level of inequality between districts / cities in NTT Province. Based on the results of the analysis and discussion, there are significant economic growth imbalances between districts/ cities in NTT. Kupang City as the capital of the NTT Province is the only one that is categorized as a developed and fast-growing region, while other districts are categorized as growing regions. Another thing that can be stated is that there is a disparity or inequality in development between regions in NTT, which is indicated by a different theil entropy index. In addition to Kupang with its highest level of inequality, the districts on the mainland of Timor are still more unbalanced than the districts on the mainland of Flores and Sumba. The regencies that are spread over the cluster of islands are relatively more evenly distributed. It is suggested that it is necessary to encourage the development of investments based on superior and specific sectors with the support of potential resources available and spread in each district / city in NTT to create more operational policies and programs. In addition, the field of development of non-conventional sectors such as the tourism sector in the region which is the main driving sector of regional economic development needs to be developed more broadly.

 

Keywords: economic growth rate, inequality between regions, economic geography

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