EFFECTS OF ECONOMIC AGGLOMERATION AND LABOR PRODUCTIVITY ON INCOME DISPARITIES IN THE EAST COAST REGION OF NORTH SUMATERA – INDONESIA

Bonaraja Purba

Abstract


This study aims to find and analyze the effect of economic agglomeration and labor productivity on income disparities among districts  in the East Coast region of North Sumatra Indonesia. The analytical tool used is the panel data regression equation model with annual data 2012-2016. The results of the study found that: (1) The average level of economic development disparity is highest in Medan followed by Batu Bara and the lowest is Serdang Bedagai; (2) Labor productivity variables have a significant positive effect on income disparity; and (3) the variable economic aglomeration has a positive influence although it is not significant to the income disparity in the East Coast Region of North Sumatera Province.

Keywords:  agglomeration, productivity, income disparity, panel data regression

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