The Effect of Industrial Agglomeration and Fiscal Decentralization on Income Disparity of Inter-Regional in Lampung Province


  • I Wayan Suparta
  • Ambya Ambya
  • Andala Rama Putra Barusman
  • Kamaruzzaman Muhammad


The purpose of this study: This research discuss to determine the effect of industrial agglomeration and fiscal decentralization on income disparities between regions (ten districts/cities) in Lampung Province.

Methodology: The time span observed in the data research collect from 2001 to 2015. The analytical tool used to answer the purpose of this research with Multiple Linear Regression.

Main Findings:The results indicate that the regression coefficient on the Agglomeration variable (AGLO) is -0.0039, for the Regional Original Income variable (PAD) of 0.0051 and for the Balance Funding (DAPER) variable of -0.0021. All of these coefficients have a significant and significant effect at the 5% level. Based on the results of testing the regression coefficient there was no violation of classical linear assumptions. Thus this regression coefficient has met the requirements that have been standardized in econometric theory. In , this case, coefficient fulfills the criteria of the Best Linear Unbiased Estimator (BLUE).