ANALYSIS OF THE ECONOMIC GAP BETWEEN URBAN AND RURAL AREAS IN INDONESIA
Keywords:
Economic Inequality, Urbanization, DevelopmentAbstract
The economic gap between urban and rural areas reflects a complex dynamic in Indonesia, characterized by differences in income, infrastructure access, and economic opportunities between cities and villages. Urbanization acts as a trigger for urban bias, exacerbating the welfare divide by concentrating resources in urban areas, even though economic growth in cities does not automatically reduce overall inequality. This study uses a qualitative method with a literature review approach as the primary basis for analysis to examine how consumption patterns, infrastructure access, economic growth, and public policies interact in the context of regional disparities. Research results indicate that although cities offer broader infrastructure and job opportunities, the benefits of economic growth are still uneven and often insufficient to fully reduce disparities; In rural areas, increased economic growth has the potential to reduce inequality if driven by enhanced productivity, economic diversification, and improved access to infrastructure and public services.
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