Hamdan Yasir, Student at the Faculty of Economics, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0009-0009-0166-1293
e-mail: hsobri25@gmail.com

Didik Susetyo, Doctor of Economics, Faculty of Economics, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0002-2435-3519
e-mail: didiksusetyo60@unsri.ac.id

The Relationship Between Income Inequality, Poverty, And Human Development Index In North Sumatra Province

Abstract. Introduction. Income inequality, poverty, and the human development index (HDI) are important indicators to measure the level of welfare and progress of a region. North Sumatra Province has significant variations in income inequality, poverty, and human development index (HDI)  between districts and cities. This needs to be a concern for the government to make countermeasures in order to create equitable development and improve community welfare in all regions of North Sumatra

Purpose. This study aims to determine how these variables have causality between income inequality, poverty, and human development index in North Sumatra province.

Results. The results show that income inequality, poverty, and human development index have causality in both the long run and short run in North Sumatra province.

Conclusions. Of all model estimates, the long-term VECM results can be seen from the t-test value which is higher than the standard value of 1.967245. While the short-term causality model estimation results show the Chi-square probability value of significance at the significance level is at 5% alpha or p-value <0.05.

Keywords: income inequality (GR); poverty (P); human development index (HDI).

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