Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)

10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)

📍Makassar, Indonesia🗓️ 6-8 October 2025
<Previous Article In Volume
Next Article In Volume>

Regional Fiscal Dynamics and Income Disparity: Cross-Provincial Evidence from Sulawesi

Authors
Sri Undai Nurbayani1, *, Rusda Rusda1
1Hasanuddin University, Makassar, Indonesia
*Corresponding author. Email: sriundai@unhas.ac.id
Corresponding Author
Sri Undai Nurbayani
Available Online 20 June 2026.
DOI
10.2991/978-94-6239-709-5_164How to use a DOI?
Keywords
Intergovernmental Fiscal Transfers; Regional Public Investment; Path Analysis
Abstract

Regional income inequality in Indonesia remains a persistent structural challenge in achieving inclusive and sustainable development. Despite Sulawesi Island’s robust economic growth in recent years, substantial disparities in in-come distribution continue to exist across its provinces. This study investigates the role of regional fiscal dynamics—specifically Intergovernmental Fiscal Transfers (IFT) and Regional Public Investment (RPI) —in reducing the Income Inequality across six provinces in Sulawesi. Utilizing a path analysis approach, the findings reveal that Regional Public Investment exerts a direct, negative, and statistically significant effect on income inequality. In contrast, Intergovernmental Fiscal Transfers do not have a direct impact, but demonstrate a significant indirect effect mediated through regional economic growth. These results underscore the critical need to enhance the effective-ness of regional public investment and strengthen intergovernmental fiscal capacity. Improving fiscal coordination and investment targeting is essential to support sustainable, inclusive, and regionally balanced development strategies across Sulawesi and other economically diverse regions in Indonesia.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
20 June 2026
ISBN
978-94-6239-709-5
ISSN
2352-5428
DOI
10.2991/978-94-6239-709-5_164How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Sri Undai Nurbayani
AU  - Rusda Rusda
PY  - 2026
DA  - 2026/06/20
TI  - Regional Fiscal Dynamics and Income Disparity: Cross-Provincial Evidence from Sulawesi
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 2344
EP  - 2353
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_164
DO  - 10.2991/978-94-6239-709-5_164
ID  - Nurbayani2026
ER  -