The Effect Of Economic Growth And Income Inequality On Poverty In Indonesia
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 4
Abstract
The purpose of national development is to realize a just, competitive, progressive, and prosperous Indonesian society of the Republic of Indonesia. This study aims to determine the economic growth, inequality of development and its effect on poverty reduction in Indonesia by using 33 provincial panel data from 2009 until 2015. It analyzed by using descriptive and multiple linear regression analysis.The research found that the poverty rate in Indonesia has decreased in line with the improvement in economic conditions which is marked by an average economic growth above 5 percent per year. The result of regression analysis found that there is thepositive and significant effect of Gini index variable to the increase of poverty. It means that any increase in income inequality (Gini index) occurring in Indonesia, could lead to the rise in debt in Indonesia. The human development index variables affect negative and real to poverty. Meanwhile, the growth of Gross Regional Domestic Product (PDRB) has a negative but not real impact on poverty reduction. It shows that every increase of Human Development Index and GDP growth can reduce thepoverty rate in Indonesia.
Authors and Affiliations
Akhmad . , Alyas . , Amir .
Keywords
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- EP ID EP414881
- DOI 10.9790/5933-0904022026.
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