Regional Expansion Policy in the Northern Sumatra Province of Indonesia: Impact on Regional Inequality

  • Yola Anggia Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia
  • Lai Wei Sieng Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia
  • Wye Chung Khain Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia

Abstract

This study aims to examine the impact of regional expansion policy on regional
development inequality in North Sumatra province, Indonesia. North Sumatra province
is one of 34 Provinces in Indonesia. This province produce many new regencies and
cities as a result of regional expansion policy. In 2000, the number of regencies in
North Sumatra Province were 19 and then expanded to 33 in 2009. The number of
regencies remain unchanged since then. The aim of regional expansion policy is to
improve prosperity and accelerate development. Therefore, this study attempts to
analyze whether the policy of regional expansion in North Sumatra Province achieved
the purpose or rather caused development inequality in the regency. This study utilized
the Williamson Index method to analyze the value of development inequalities in North
Sumatra Province from 2000 to 2016 using data from all regencies in the province.
The results show that the expansion of the regency has resulted in a high level of
development inequality. This indicates that developmental inequality is increasing.

Published
2020-02-12
How to Cite
ANGGIA, Yola; SIENG, Lai Wei; KHAIN, Wye Chung. Regional Expansion Policy in the Northern Sumatra Province of Indonesia: Impact on Regional Inequality. Journal of Business Management and Accounting, [S.l.], v. 9, n. 2, p. 93-103, feb. 2020. ISSN 2231-9298. Available at: <http://e-journal.uum.edu.my/index.php/jbma/article/view/8725>. Date accessed: 17 feb. 2020. doi: https://doi.org/10.32890/jbma2019.9.2.8725.
Section
Articles