Trends of Income Inequality and Poverty Involvement: Panel Evidence from Bali Province

Abstract

The excellent progress of Bali's tourism has a good impact on the economic development of Bali Province, but the imbalance in tourism development between North Bali and South Bali produces several negative impacts, one of those impacts is Income Inequality. This study is intending to explore the relationship between the sum of Hotels, Tourist, Motor Vehicle Tax, Motor Vehicle Fuel Tax, and Literacy toward Income Inequality in Bali Province. This study uses Panel Data Multiple Regression using Fixed Effect Model utilizing 9 districts in Bali Province as cross-section data with year intervals from 2012 to 2018. This study found that all independent variables have a significant effect on Income Inequality in Bali Province. The Hotels, The Motor Vehicle Tax, and The Motor Vehicle Fuel Tax variables have no significant effect to Income Inequality. Meanwhile, Tourist and Literacy significantly affect income inequality with a negative relation. Literacy and Tourist arrivals can mitigate Income Inequality and the development of poverty follows the trends of development of Income Inequality in Bali Province.