Factors That Influence the Level of Development Inequality in Districts / Cities Sumatera Utara Province

Inequality Development in North Sumatra Province during the period of 2012 to 2016 shows an increasing
condition. The purpose of this study is to analyze the factors that influence development inequality in the
Regency / City in North Sumatra Province using panel data. With the independent variable GRDP Per
Capita, HDI, Government Expenditures Budget while the dependent variable is the Wiliamson index in
districts / cities in North Sumatra province. Data obtained by the Central Sumatra Provincial Statistics
Agency (BPS) during 2012-2016. The method used is Square Least Panel (PLS) with Fixed Effect Model
(FEM). The results showed that GRDP Per Capita had a negative effect on the Wiliamson Index of 35.52%
and significant, HDI had a negative effect on the Williamson Index of 18.26% and significant, the
Government Expenditures Budget had a negative effect on the Wiliamson Index of 32.9% in North Sumatra.