Analysis of Economic Inequality and Human Development: A Case Study of West Sumatra Province in 2015-2019

Abstract

West Sumatra Province is one of the provinces with diverse human resources. This situation causes the need for human resource management to encourage economic growth. This study aims to identify economic development, economic inequality and human development, as well as the relationship between economic inequality and human development in West Sumatra Province in 2015-2019. The basic data used in the analysis are GRDP and the Human Development Index (IPM) using quantitative descriptive analysis methods. Economic development was analyzed using Location Quotient (LQ) and Klassen typology, while economic inequality was using Entropy Theil. The research showed that the Klassen typology results were dominated by developed but slow regions which amounted to nine regencies/cities and based on LQ showed that urban areas had a base sector in the secondary and tertiary sectors, while rural areas had a base sector in the tertiary sector. The HDI has increased which is accompanied by an increase in entropy, indicate that high GRDP is not evenly distributed. In addition, there is a strong relationship between economic inequality in terms of GRDP per capita and HDI. This shows an increase in economic growth that triggers improvements in the health and education sectors so that it has a good impact on the quality of human development but needs an even distribution.