Abstract

The success of a development can be seen from the conditions of uneven economic development in the scope of society, which results in development inequality between developed and underdeveloped regions. This study aims to analyze the effect of GRDP, investment, and agglomeration on development inequality between regions in East Kalimantan Province. The data source of this research is secondary data from 2017 to 2021, which comes from the Central Bureau of Statistics of East Kalimantan Province. The analysis method used in this research is a quantitative approach using panel data regression analysis. Panel data analysis using the Fixed Effect Model, which is the best model for processing data in this study, shows that GRDP has a negative and significant effect, then investment has a positive and insignificant effect, and agglomeration has a positive and significant effect on development inequality between regions in East Kalimantan Province.

Keywords: GRDP, Investment, Agglomeration, Development Inequality