Disparity of Income Distribution Between Regencies/Cities in Bali Province of Indonesia

Abstract

Purpose: This study aims to examine the impact of regional riginal revenue and balance funds on unemployment rates and disparity of distribution income between regions in Bali Province of Indonesia. Design/methodology/approach: A deductive strategy was required to interpret the data and the quantitative approach with path analysis was adopted to answer research questions. This article included panel data on all variables in this field from 2012 to 2019. Findings: The results indicate that the regional original revenue, balancing funds, and unemployment rates have a negative and insignificant effect on disparity of distribution income between regions, whereas regional original revenue and balancing funds have no effect on disparity of distribution income between regions via unemployment rates in the districts and cities of Bali Province. Implications: By investigating income disparities, the study can shed light on the allocation of resources across different regions within Bali Province of Indonesia. It will assist policymakers determine where resources are required the most and ensure a more balanced distribution of public services, infrastructure development, and economic opportunities in Bali or other areas in Indonesia. Originality/value: The study will be expected to provide insights into the extent of income disparities between different regencies/cities in Bali Province of Indonesia. It helps to identify regions with significant gaps in income distribution and highlighting areas where socioeconomic conditions might be more challenging.