Financial Deepening & Income Inequality: Evidence From Indonesia

Alghifari Mahdi Igamo; Gustriani Gustriani; Sri Maryati; Azwardi Azwardi; Sukanto Sukanto

doi:10.14710/jdep.6.2.143-152

DOI: https://doi.org/10.14710/jdep.6.2.143-152

Financial Deepening & Income Inequality: Evidence From Indonesia

Alghifari Mahdi Igamo¹ , Gustriani Gustriani¹, Sri Maryati², Azwardi Azwardi¹, Sukanto Sukanto¹

¹Ekonomi Pembangunan, Universitas Sriwijaya, Indonesia

²Akuntansi, Universitas Sriwijaya, Indonesia

Citation Format:

Abstract

Financial deepening is a term used to measure the quality of improvement in the provision of financial services. Financial deepening can be seen as one of the factors affecting income inequality. The focus of financial deepening in this research using a credit ratio is a ratio of total credit released by commercial banks in each province compared to the province’s GDP and the bank ratio is the ratio of the number of bank branches per million population of the province. The discussion of this research is limited to using country data from 34 provinces in Indonesia from 2005-2021. The results show that the various indicators that measure financial deepening have an impact on increasing inequality during the observation period. This condition shows that financial services, especially banking access through the ratio of the number of banks and also the development of the credit ratio, have not been able to reduce income inequality. The government needs to evaluate policies and improve the quality of sustainable financial services to achieve a more even distribution of income so that income inequality can be reduced.

Fulltext View|Download

Keywords: Financial Deepening; Income Inequality; Gini Ratio

Article Metrics:

Article Info

Section: Research Article

Language : EN

In Vol 6, No 2 (2023): AUGUST

Recent articles

Financial Development, Financial Market, and Financial Institutional on International Trade in Developing Eight Countries Analisis Pengaruh Produk Domestik Regional Bruto, Indeks Pembangunan Manusia, Pengangguran, dan Inflasi Terhadap Kemiskinan Pengaruh Volume Impor Bawang Putih Terhadap Harga Eceran Bawang Putih di Indonesia More recent articles

Most cited articles

ANALISIS PENGARUH PENGELUARAN PEMERINTAH DI SEKTOR PENDIDIKAN DAN KESEHATAN TERHADAP PENGENTASAN KEMISKINAN MELALUI PENINGKATAN PEMBANGUNAN MANUSIA DI PROVINSI JAWA TENGAH ANALISIS PENGARUH INSTRUMEN PEMBAYARAN NON-TUNAI TERHADAP STABILITAS SISTEM KEUANGAN DI INDONESIA KORUPSI BANGKRUTKAN NASIONALISME ANALISIS INDUSTRI PERBANKAN SYARIAH DI INDONESIA More cited articles

Last update:

No citation recorded.

Last update: 2024-11-14 18:13:12

No citation recorded.

Author(s) Rights

In order for Jurnal Dinamika Ekonomi Pembangunan (JDEP) to publish and disseminate research articles, we need publishing rights (transferred from author(s) to publisher). This is determined by a publishing agreement between the author(s) and JDEP. This agreement deals with the transfer or license of the copyright of publishing to JDEP, while authors still retain significant rights to use and share their own published articles. JDEP supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.

As an author, you have rights to a large range of uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in JDEP has wide rights to use their works for teaching and scholarly purposes without needing to seek permission, including:

use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
use for internal training by the author's company;
distribution to colleagues for their research use;
use in a subsequent compilation of the author's works;
inclusion in a thesis or dissertation;
reuse of portions or extracts from the article in other works (with full acknowledgement of final article);
preparation of derivative works (other than commercial purposes) (with full acknowledgement of final article);
voluntary posting on open web sites operated by author or author’s institution for scholarly purposes,

(but it should follow the open-access license of Creative Common CC-by-SA License).

Authors/readers/third parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially, but they must give appropriate credit (the name of the creator and attribution parties (authors detail information), a copyright notice, an open-access license notice, a disclaimer notice, and a link to the material) and provide a link to the license.

Authors/readers/third parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, re-use portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).

Copyright Transfer Agreement for Publishing (Publishing Right)

The authors submitting a manuscript do so on the understanding that if accepted for publication, the copyright for publishing (publishing right) of the article shall be assigned/transferred to the Department of Economics, Faculty of Economics and Business, Universitas Diponegoro as the publisher of JDEP.

Upon acceptance of an article, authors will be asked to complete a 'Copyright Transfer Agreement for Publishing (CTAP)'. An e-mail will be sent to the Corresponding Author confirming receipt of the manuscript together with a CTAP form by the online version of this agreement.

JDEP, the publisher, and the editorial board make every effort to ensure that no wrong or misleading data, opinions or statements be published in the journal. In any way, the contents of the articles and advertisements published in JDEP are sole and exclusive responsibility of their respective authors and advertisers.

Remember, even though we ask for a transfer of copyright for publishing (CTAP), our journal Author(s) retain (or are granted back) significant scholarly rights as mentioned before.

The Copyright Transfer Agreement for Publishing (CTAP) Form can be downloaded here