Analysis of Factors That Influence the Interdition of District/City in the Province North Sumatra

This study aims to determine the effect of the
Human Development Index (HDI), Economic Growth, Poor
Population, Government Expenditures on Health Education and
Government Expenditures on inequality between regions in
North Sumatra. The analytical method used in this study is a
descriptive analysis method and also the method of multiple
regression analysis with the Fixed Effect method using panel data
from 33 districts/cities from 2012-2016. The data of this study are
secondary data originating from the Central Sumatra Provincial
Statistics Agency and the Directorate General of Fiscal Balance,
the Ministry of Finance which was downloaded through the
official website of each institution. The results showed that
economic growth, the number of poor people, and government
expenditure in the health sector had a positive and significant
effect on income inequality in North Sumatra. While government
spending in education has a negative and significant effect on
income inequality in North Sumatra. The variable Human
Development Index (HDI) has a negative and insignificant effect
on income inequality in the North Sumatra region. The
estimation results also show that the variation in the change in
the value of the non-inequality-free variable can be explained
simultaneously by the independent variables namely the
variables of HDI, PE, PO, DP, and DK of 99.42% while the
remaining 0.58% is explained by factors others that are not
included in the model.