The influence of the gini ratio and inflation on the Human Development Index (HDI)

Reka Ramadhan; Intan Deanida  Pertiwi

doi:10.55942/pssj.v5i9.721

Authors

Reka Ramadhan Universitas Nusa putra
Intan Deanida Pertiwi Universitas Nusa putra

DOI:

https://doi.org/10.55942/pssj.v5i9.721

Keywords:

Human Development Index (HDI), Gini Ratio, Inflation, Income Inequality

Abstract

The purpose of this study is to examine how inflation and the Gini Ratio affect Indonesia's Human Development Index (HDI).Multiple linear regression using secondary data was used for the analysis.The results show that the HDI is negatively and significantly impacted by inflation, suggesting that rising inflation can lower the quality of human development by stifling people's purchasing power and restricting access to healthcare and education.Income inequality has not yet emerged as a major factor impacting HDI accomplishment during the study period, as seen by the Gini Ratio's lack of a substantial impact on the HDI.The HDI is significantly impacted by both independent variables at the same time, with the model accounting for 23.9% of the variation in the HDI and other factors influencing the remaining variation.These results emphasize how crucial inflation control measures are to promoting the enhancement of Indonesia's human development, especially with regard to food items and essentials.

Author Biographies

Reka Ramadhan, Universitas Nusa putra

Reka Ramadhan is a lecturer in the Department of Management, Faculty of Business, Education, and Law, Indonesia. His research interests include finance and digital consumerism. He actively explores the financial factors in society.

Intan Deanida Pertiwi, Universitas Nusa putra

Intan Deanida Pertiwi is a lecturer in the Department of Management, Faculty of Business, Education, and Law at Nusa Putra University. His academic focus includes marketing and digital marketing. He is involved in research and academic discussions on how inflation affects purchasing power.

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