Analysis Of Regional Development Inequality In East Java Province: A Klassen Typology And Theil Index Approach

Salsa Choirunnisa; Sishadiyati Sishadiyati

doi:10.63922/ijebir.v5i05.5969

Salsa Choirunnisa Development Economics Study Program,UPN Veteran Jawa Timur, Surabaya, Indonesia
Sishadiyati Sishadiyati Development Economics Study Program,UPN Veteran Jawa Timur, Surabaya, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i05.5969

Keywords: development inequality, Klassen Typology, Theil Index, Theil Index decomposition, East Java Province

Abstract

Regional development inequality remains one of the main issues in East Java Province, despite the province being the second-largest contributor to the national economy. Previous studies generally employed a single analytical approach or had limited spatial and temporal coverage, thus failing to comprehensively capture the dynamics of development inequality. This study aims to analyze regional classification using the Klassen Typology, measure the level of development inequality using the Theil Index, and examine the contributions of between-group and within-group components through Theil Index decomposition. The research adopts a descriptive quantitative approach using secondary data from 38 regencies/cities in East Java Province over the period 2000–2025. The results indicate that most regencies/cities fall into Quadrant IV, while Surabaya City, Malang City, and Gresik Regency consistently remain in Quadrant I. The Theil Index value decreased from 0.1555 to 0.1353, and then increased to 0.1446. The decomposition of the Theil Index shows that the between-group component contributes more significantly than the within-group component. These findings suggest that development inequality in East Java Province is more strongly influenced by differences in characteristics between regional groups, implying the need for policies oriented toward more equitable development.

Keywords: development inequality, Klassen Typology, Theil Index, Theil Index decomposition, East Java Province

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