Analysis of Income Inequality in Sulawesi Island

This research aims to analyze the direct and indirect effects of private investment, local government expenditures, and human development index on income inequality through employment opportunities and economic growth in Sulawesi Island. The data used in this study is secondary data obtained from the Central Bureau of Statistics and the Capital Investment Coordinating Board. This data is in the form of panel data consisting of data from all provinces on Sulawesi Island from 2011 to 2019. The data analysis method used in this study is path analysis. The results show that private investment and local government expenditures directly have a negative effect on income inequality in Sulawesi Island, while the human development index has a direct positive effect on income inequality in Sulawesi Island. Private investment does not indirectly affect income inequality through employment opportunities in Sulawesi Island, local government expenditure indirectly has a positive effect on income inequality through employment opportunities in Sulawesi Island, and the human development index indirectly has a negative effect on income inequality through employment opportunities in Sulawesi Island. Private investment, local government expenditure and human development index indirectly have no effect on income inequality through economic growth in Sulawesi Island.