THE IMPACT OF ECONOMIC GROWTH AND INFLATION ON INCOME INEQUALITY AND POVERTY IN SULAWESI ISLAND

Abstract

This study analyzes the impact of economic growth and inflation on income inequality and poverty in Sulawesi Island, using secondary panel data from 2011 to 2023. The methods applied include panel data regression and path analysis with the aid of EViews 12 software. The analysis results show that economic growth has a significant negative impact on income inequality, while inflation has a significant positive effect on income inequality. However, neither economic growth nor inflation has a significant direct impact on poverty. Income inequality, on the other hand, has a significant positive effect on poverty and acts as a mediating variable in the relationship between economic growth, inflation, and poverty.