Citation:

Albert Gamot Malau, April Gunawan. "The Impact of Disparities in Economic Development: Among Cities in North Sumatra Province after COVID-19" International Research Journal of Economics and Management Studies, Vol. 3, No. 3, pp. 183-189, 2024.

Abstract:

Economic development aims to change for the better through planned and consistent efforts and development to achieve the best goal of obtaining prosperity. The COVID-19 virus hit the Indonesian population and impacted the decreasing gross regional domestic product at constant prices in 2020–2022. This research uses secondary data from 2017–2022, with a base year of 2010. The analytical tools used are the Williamson Index, Klassen Typology, and the regression model, which is panel data. The software used is eviews. The results of the Williamson index analysis explain that the highest inequality occurred in Medan at 0.45, while the lowest occurred in Simalungun Regency. Class Typology Analysis explains that: 1) fastdeveloping and fast-growing areas are Medan, South Labuhan Batu, North Labuhan Batu, South Tapanuli, Tanjung Balai, Asahan, and Padang Lawa, 2) advanced but depressed areas are Pematang Siantar, Karo, Sibolga Batu Bara, and Deli Serdang; 3) fast-growing areas are Padang Lawas, Mandailing Natal, West Pakpak, Gunung Sitoli, Simalungun, Samosir, and Padang Sidempuan; 4) relatively underdeveloped areas are North Tapanuli, Tebing Tinggi, Binjai, Langkat, Humbang Haunjungan, Toba Samosir, Dairi, West Nias, North Nias, and South Nias. Regression analysis explains that development disparities have a negative and significant influence on the gross regional domestic product of North Sumatra Province. Estimated parameters do not match expectations, where the variables have a real and significant effect with a real level of 1% and development disparities have a positive and significant effect on the poor population. The estimated parameters align with expectations, where all variables have a real and significant effect at a real level of 1%. Development disparities positively affect COVID-19, both before and after COVID-19. Estimated parameters align with expectations, where all variables have no significant effect.

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Keywords:

Williamson Index, Klassen Typology, and Regression.