scholarly journals EFFECTS OF REMITTANCES ON POVERTY REDUCTION: THE CASE OF INDONESIA

2017 ◽  
Vol 32 (3) ◽  
pp. 163 ◽  
Author(s):  
Faiza Husnayeni Nahar ◽  
Mohd Nahar Mohd Arshad
Keyword(s):  
Poverty Reduction ◽  
Economic Status ◽  
Participation Rate ◽  
Skills Training ◽  
Educational Background ◽  
Poverty Rate ◽  
Least Square ◽  
Negative Effects ◽  
Poverty Level ◽  
The Government

Remittances have been reported as a tool for fighting poverty in some selected countries, such as Indonesia. An increase of income through remittances tends to improve the economic status of the migrant’s household. Once they get a high salary, they will remit money (a remittance) to their household in Indonesia via formal institutions, such as banks.  The migrant’s household can fulfil their basic needs and can use the remittance for educational investment and productive activities. The education investment aims to educate the children or grandchildren of migrants, which will be beneficial for the future generations of the family, allowing them the chance of a more prosperous life. The poverty rate would be reduced gradually, and economic welfare can be achieved. The main objectives of this paper are first to estimate the effects of remittances on poverty in Indonesia from 1983 to 2015 and second, to propose several strategic policies related to remittances and poverty reduction. Other variables considered include inflation, exchange rates, income, income inequality and the labor force participation rate. An Ordinary Least Square (OLS) method was used to explore the econometric and estimated results. The study found that an increase in remittances led to a reduction in poverty by 2.56%. Inflation and the exchange rate have positive and negative effects on poverty, respectively. The small effect of remittances on poverty’s reduction could possibly be explained by the low educational background of the migrants, low wage jobs, expensive remittance costs, and migrants not knowing how to remit money through formal financial institutions. Hence, to reduce the poverty level, the government needs to first facilitate skills training for the workers so that they could get a better job and earn more, second, lower the transaction costs of remittances, and lastly, provide agents at Indonesian banks overseas to provide better facilities to Indonesian workers to remit money back to their home country.

Remittance and Economic Development of Nepal

Patan Pragya ◽  
2019 ◽  
Vol 5 (1) ◽  
pp. 196-208
Author(s):  
Badri Narayan Sah
Keyword(s):  
Economic Development ◽  
Household Income ◽  
Poverty Reduction ◽  
Economic Status ◽  
Poverty Rate ◽  
Daily Consumption ◽  
Gulf Countries ◽  
The World ◽  
Internal Sources ◽  
Sources Of Capital

Nepal is one of the least developed but high remittances recipient countries in the world. Nepal received remittance from US$ 8.1 billion in 2016 and it is ranked 23rd among the remittance receiving countries in the world. Remittance income is one of the major sources of capital formation in the context of Nepal. It is directly related with the labour migration in a country which in return enhances foreign employment. Remittances have become a major contributing factor to increasing household income as well as country’s GDP. About 30 percent of Nepal’s GDP comes in the form of remittance money which is sent home by Nepalese working abroad and it helps to reduce country’s poverty rate. Poverty reduction took place in Nepal from 42 percent (1995/96) to 25.2 percent (2010/11). Nepal’s remittance recipients reached 31.5 percent GDP in 2015. The total amount of remittance in the country is 259 billion and among which 20 percent is internal sources, 11 percent from India and 69 percent from Gulf countries. Remittance received by the households is mainly used for daily consumption (79 percent) and remaining other purposes. Moreover, Nepal’s economic status mostly depends on remittance received which is therefore migration driven economy.

scholarly journals Contribution of Products Domestic Bruto (GDP) Based on the Business Field on Poverty on Indonesia

2018 ◽  
Author(s):  
M.Si Dr. Andi Sessu
Keyword(s):  
Human Resources ◽  
Poverty Rate ◽  
Multiple Correlation Coefficient ◽  
Multiple Correlation ◽  
Poverty Level ◽  
Processing Industry ◽  
The World ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

The economic development in Indonesia from period to period until now is increasing because Indonesia is very rich with natural and human resources, only quality human resources need to improve their quality in order to be able to develop better economy in the future, however unemployment and poverty rate of Indonesia is still high compared to some other countries in the world, therefore it is necessary jointly between individual society, private and the government has maximum efforts to reduce unemployment and poverty in Indonesia, by increasing the growth of gross domestic product (GDP) contribution by business field can reduce poverty level in Indonesia. The result of multiple regression analysis shows that the contribution of GDP according to business field can decrease poverty level in Indonesia. This condition indicates that agriculture, forestry, fishery sector has a negative effect on poverty rate in Indonesia which means any decrease in agriculture, forestry, fishery by one unit affect the decrease of poverty level of 0.203 at constant -7,70, while the other three factors mining and quarrying, processing industry factor and trade factor have a positive effect on poverty level which means that every increase of one unit leads to a significant increase in poverty not yet able to reduce poverty level but has significant influence on all variables to poverty level in Indonesia. The results of multiple correlation coefficient analysis indicate that from each sector, agriculture, forestry, mining fishery, excavation, processing industry and trade are very strong together that is equal to 97,70%, besides coefficient value of determination equal to 0,96% whereas the remaining 4% of the poverty rate is influenced by other factors

scholarly journals Contribution of Products Domestic Bruto (GDP) Based on the Business Field on Poverty on Indonesia

2018 ◽  
Vol 4 (1) ◽  
pp. 73
Author(s):  
Andi Sessu
Keyword(s):  
Human Resources ◽  
Poverty Rate ◽  
Multiple Correlation Coefficient ◽  
Multiple Correlation ◽  
Poverty Level ◽  
Processing Industry ◽  
The World ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

The economic development in Indonesia from period to period until now is increasing because Indonesia is very rich with natural and human resources, only quality human resources need to improve their quality in order to be able to develop better economy in the future, however unemployment and poverty rate of Indonesia is still high compared to some other countries in the world, therefore it is necessary jointly between individual society, private and the government has maximum efforts to reduce unemployment and poverty in Indonesia, by increasing the growth of gross domestic product (GDP) contribution by business field can reduce poverty level in Indonesia. The result of multiple regression analysis shows that the contribution of GDP according to business field can decrease poverty level in Indonesia. This condition indicates that agriculture, forestry, fishery sector has a negative effect on poverty rate in Indonesia which means any decrease in agriculture, forestry, fishery by one unit affect the decrease of poverty level of 0.203 at constant -7,70, while the other three factors mining and quarrying, processing industry factor and trade factor have a positive effect on poverty level which means that every increase of one unit leads to a significant increase in poverty not yet able to reduce poverty level but has significant influence on all variables to poverty level in Indonesia. The results of multiple correlation coefficient analysis indicate that from each sector, agriculture, forestry, mining fishery, excavation, processing industry and trade are very strong together that is equal to 97,70%, besides coefficient value of determination equal to 0,96% whereas the remaining 4% of the poverty rate is influenced by other factors.

scholarly journals Public Spending and Poverty Reduction in Indonesia: The Effects of Economic Growth and Public Spending on Poverty Reduction in Indonesia 2009-2018

2019 ◽  
Vol 4 (2) ◽  
pp. 49-56
Author(s):  
Hendrawan Toni Taruno
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Social Protection ◽  
Public Spending ◽  
Poverty Rate ◽  
Single Digit ◽  
The Past ◽  
The Government ◽  
Urban And Rural Areas

Poverty is a complex and multidimensional issue. Over the past four decades, the number of poor in Indonesia has experienced a significant decline, from 40.10 percent in 1976 to 9.82 percent in March 2018. Nevertheless, the disparity of poverty rates between provinces is still quite high. The poverty rate in several provinces in Java Island, for example, is already at the single-digit level, while in Eastern Indonesia, is still more than double-digit level. As it is known, public spending and economic growth are two crucial instruments on poverty reduction programs. This study aims to investigate the role of economic growth and public spending, particularly education, health, and social protection on poverty reduction in Indonesia. By using panel data from 31 provinces during 2009-2018 period, this study used two regression models to analyze the effects of these two variables on poverty reduction, both in urban and rural areas. This study shows that public spending on health and education sectors has a slightly different effect on poverty reduction between urban and rural areas. Convincingly, spending allocation on health and education has had a significant effect to reduce poverty rate in rural areas, while the decline of poverty rates in urban is likely more influenced by spending on health. This study also shows that over the past ten years, economic growth and social protection spending did not have a significant effect on reducing poverty rates. Therefore, in order to reduce poverty more effectively, it would be better for the government to focus its poverty reduction programs on investment in health and education sectors.

scholarly journals CORRELATION OF SOCIAL CAPITAL AND POVERTY FARMERS IN ACEH

2020 ◽  
Vol 8 (1) ◽  
pp. 20-26 ◽  
Author(s):  
Saifuddin Yunus ◽  
Suadi Zainal ◽  
Fadli Jalil ◽  
Cut Maya Aprita Sari
Keyword(s):  
Social Sciences ◽  
Social Capital ◽  
Rural Areas ◽  
Urban Areas ◽  
Agricultural Development ◽  
Poverty Rate ◽  
Poverty Level ◽  
The Social ◽  
The Government ◽  
The Relationship

Purpose of the study: This study tried to examine the correlation between social capital and the poverty level of farmers in Aceh. It was linked to the uneven agricultural development of some rural areas in Aceh had caused the poverty rates in villages are higher than in the urban areas. Hence the social capital is important as other capitals in development and become the energies for the development and decreases the rate of poverty. Methodology: This research used a quantitative method by distributing the questionnaire to 300 respondents in Aceh Tamiang, Pidie Jaya and Aceh Tengah, Indonesia. The data analyzed by using the Spearman correlation with the assistance of the Statistical Package for Social Sciences to determining the relationship between two variables; social capital and poverty in farmers. Main Findings: This study found that there is a positive and significant correlation between social capital and the level of poverty. Famers who have a higher stock of social capital are found to be lower in the poverty rate. Applications of this study: The finding of this study is useful for the government of the Aceh government to explore and strengthen farmers' social capital to empowering their economies. It would be relevant to decreasing the poverty rate according to farmers in Aceh. Novelty/Originality of this study: The case of poverty in Aceh was widely explained by the numbers of the researcher. But there is no recent publication that has explained the relationship between poverty and social capital in Aceh. Therefore a strong level of social capital will be able to significantly reduce poverty in Aceh.

scholarly journals IMPLIKASI COVID-19 TERHADAP KEMISKINAN KANAK-KANAK

2021 ◽  
Vol 9 (1) ◽  
pp. 126-133
Author(s):  
FARRAH ATIKAH SAARI ◽  
WAN AHMAD AMIR ZAL WAN ISMAIL ◽  
TENGKU FAUZAN TENGKU ANUAR
Keyword(s):  
United Nations ◽  
Future Generation ◽  
Poverty Rate ◽  
Journal Articles ◽  
Critical Problem ◽  
Negative Effects ◽  
Policy Proposal ◽  
Program Policy ◽  
Effects On Children ◽  
The Government

Abstrak Isu kemiskinan kanak-kanak amat jarang diwacanakan di Malaysia sedangkan ia merupakan isu kritikal yang menjadi penentu masa hadapan mereka dan negara. Keadaan kemiskinan kanak-kanak menjadi lebih teruk dengan penularan wabak Covid-19 dan pengisytiharan Perintah Kawalan Pergerakan (PKP). Andaian awal, PKP memberikan kesan secara multidimensional ke atas kemiskinan kanak-kanak. Justeru, objektif kajian adalah untuk mengetahui cabaran berkaitan implikasi Covid-19 yang berbentuk multidimensional ke atas kemiskinan kanak-kanak. Kajian menggunapakai pendekatan kualitatif dengan merujuk kepada sumber sekunder sahaja yang terdiri dari Laporan Kemiskinan Kanak-kanak Bandar, UNICEF 2017, artikel jurnal, buku dan tesis yang berkaitan. Pengkaji menggunakan instrument melalui pendekatan Cadangan Dasar Program sedia ada yang dikeluarkan oleh United Nations Children's Fund (UNICEF Malaysia) yang meliputi empat bidang iaitu pendidikan, makanan, kesihatan dan kebajikan. Hasil kajian mendapati bahawa implikasi Covid-19 sememangnya telah memberi pelbagai kesan negatif kepada kanak-kanak dalam pendidikan, makanan, kesihatan dan kebajikan. Kesimpulannya, kajian ini telah membantu pelbagai pihak, khususnya pihak kerajaan berkaitan realiti kesan Covid-19 dan PKP ke atas kemiskinan kanak-kanak dari pelbagai dimensi.   Abstract The poverty issue among children is rarely being discussed and talked about in Malaysia while it is one critical problem that could affect the future generation as well as the nation. The poverty rate among children has increased with the outbreak of the Covid-19 pandemic and also the declaration of Restricted Movement Order (RMO). Based on the early estimation, RMO has been affecting the children's poverty in multidimensional aspects. Hence, objective of the study is to know the challenges related to the Covid-19 implications in form of multidimensional aspects regarding the children poverty. The research is using a qualitative approach by referring to the secondary resources which is the Report of Poverty in Urban Kids, UNICEF 2017, journal articles, books, and theses. Researchers use the instrument through the existing Program Policy Proposal approach issued by the United Nations Children's Fund (UNICEF Malaysia) which covers four areas, education, food, health and welfare. The results of the study found that the implications of Covid-19 have indeed had various negative effects on children in education, food, health and welfare. In conclusion, this study has helped various parties, especially the government bodies on tackling the reality of Covid-19 and RMO towards the poverty of children in multidimensional aspects.

scholarly journals Analysing Poverty during Covid-19 Pandemic in Indonesia Based on Historical Perspective

2021 ◽  
Author(s):  
Reni Putri Nurhidayati ◽  
Moses Pandin
Keyword(s):  
Poverty Reduction ◽  
Poverty Rate ◽  
Government Policies ◽  
Journal Articles ◽  
Poverty Level ◽  
Current State ◽  
Form Of Government ◽  
Program Policy ◽  
The Impact ◽  
Poverty Levels

Poverty is one of the indexes that can see how a country succeeds in development. In Indonesia, the poverty rate is high as the impact of the Covid-19 pandemic increases over time. Therefore, a solution is embraced in the form of government policies in tackling poverty in Indonesia. The purpose of this study is to analyze the poverty caused by the Covid-19 pandemic.What is the current state of poverty caused by the Covid-19 pandemic in Indonesia? and what are the previous government policies that have succeeded in reducing poverty in Indonesia? The method used in this study is the literature review method based on the results of critical analysis of journal articles that are relevant to the topic of discussion. The results showed that three government policies have succeeded in lowering the poverty level in Indonesia, namely the PKH program policy, the zakat policy as an indicator of poverty reduction, and the Bank Wakaf Mikro policy. Therefore, this study focuses on the policy as a study for government policy in lowering poverty levels due to the Covid-19 Pandemic.

scholarly journals An empirical nexus between poverty and unemployment on economic growth

2021 ◽  
Vol 9 (1) ◽  
pp. 85-94
Author(s):  
KEJI Sunday Anderu
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Poverty Rate ◽  
Least Square ◽  
Small Scale ◽  
Distributed Lag ◽  
Long Run ◽  
Lm Test ◽  
Short Run ◽  
The Government

The study examines the empirical nexus between poverty and unemployment on economic growth in Nigeria between 1980 and 2016. Auto-Regressive Distributed Lag (ARDL), Bound cointegration testing, and Error Correction Methods (ECM) were used to investigate the link between unemployment, poverty rate, and economic growth in Nigeria. Post estimation tests such as the Jarque-Bera test, Breusch-Pagan, ARCH test, and Ramsey reset test were also adopted in order to validate the research finding. The diagnostic tests further disclosed that the estimated model follows the Ordinary Least Square technique assumptions to attain efficiency and consistency of the model employed. The Jarque-Bera test suggests that residuals for both models are normally distributed, and the Breusch-Godfrey Serial Correlation (LM) test indicates that the hypothesis of no autocorrelation cannot be rejected. Interestingly, the ARDL and ECM results show that unemployment and poverty significantly impact economic growth both in the short and long run. Hence, the study recommended that the Nigeria government should ensure that adequate measures are put in place: Such as investment in education, agricultural sector reform, expansionary fiscal policy, intervention in micro-lending for small scale businesses by the government should be implemented to reduce the level of unemployment and poverty rate both in the short run and long run.

scholarly journals Kemiskinan dan Pengentasan Kemiskinan Di Sumatera Barat

2016 ◽  
Vol 1 (01) ◽  
pp. 78-86
Author(s):  
Ripho Delzy Perkasa
Keyword(s):  
Research Method ◽  
Poverty Reduction ◽  
Government Policies ◽  
Poor People ◽  
Poverty Level ◽  
Target Set ◽  
The Government

In this paper the authors restrict the study of poverty and government policies in poverty reduction in West Sumatera. This research method is the study of literature. The findings from the data obtained can be seen that the level of poverty in Sumatera Barat from the years 2005-2010 continued to decline. In 2005 the number of poor people amounted to 482 800 with a percentage of 10.89%. In 2006 the number of poor people in West Sumatera experienced an increase of 550 251 inhabitants with a percentage of 12.51%. In this year poverty level are far greater than what is expected in the amount of 12.07%. Likewise, in 2007 the level of poverty in western Sumatera also incompatible with yag expected by the government in the amount of 11.26%. In this year the number of poor people in West Sumatera amounting to 529 200 with a percentage of 11.90%. In 2008 the number of poor people in West Sumatera has decreased and the level of poverty in West Sumatera is far below that have been targeted by the government at 10,85%. This year the amount of poverty in West Sumatera recorded 477 200 inhabitants with a percentage of 10.67%. So also in 2009 and 2010 the number of poor recorded is also less than the target set by the government.  

Evaluating anti-poverty policy efficiencies in China: meta-frontier analysis using the two-stage data envelopment analysis model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guotao Yang ◽  
Yue Wang ◽  
Huibin Chang ◽  
Qinghua Chen
Keyword(s):  
Agricultural Production ◽  
Poverty Reduction ◽  
Reduction Process ◽  
Poverty Rate ◽  
Data Envelopment ◽  
Reduction Stage ◽  
Content Type ◽  
Frontier Analysis ◽  
Poverty Relief ◽  
The Government

PurposeThis study examines the relative efficiencies of anti-poverty policies implemented in 28 Chinese provinces.Design/methodology/approachThis study uses meta-frontier undesirable dynamic two-stage data envelopment analysis. The authors divide the poverty reduction process into two stages: agricultural production and poverty reduction. Public expenditure is the input for the second stage, and the population below the poverty line is the undesirable output. The authors compute the efficiencies (overall efficiency, efficiency of each stage and the efficiencies of individual inputs and outputs) using meta-frontier analysis for the 28 provinces.FindingsThe results show that: (1) a significant imbalance exists between the eastern and western regions in terms of input-output efficiencies; (2) the poverty reduction stage generally fared better than the agricultural production stage did. In particular, most provinces saw increases in poverty reduction efficiencies between 2013 and 2017; (3) the place-based poverty relief policies introduced in recent years are effective at reducing the poverty rate and reaching the government-set goals and (4) while disposable income has increased steadily over the past few years, income inequality has been exacerbated.Research limitations/implicationsThe results show that: (1) a significant imbalance exists between the eastern and western regions in terms of input-output efficiencies; (2) the poverty reduction stage generally fared better than the agricultural production stage did. In particular, most provinces saw increases in poverty reduction efficiencies between 2013 and 2017; (3) the place-based poverty relief policies introduced in recent years are effective at reducing the poverty rate and reaching the government-set goals and (4) while disposable income has increased steadily over the past few years, income inequality has exacerbated.Originality/valueA large amount of attention and public resources are devoted to fighting poverty and associated market failures in China. The extant literature focuses either on the agricultural production itself or the relationship between human capital and productivity levels. Making use of recent developments of the DEA method, the authors propose a new framework for evaluating the efficiencies of the poverty reduction process. Such a framework has the advantage of giving researchers and policymakers a more detailed diagnosis with regard to the components in the endeavor to eliminate poverty and providing useful information for policymakers to optimize public funds use. Methodologically, the framework is flexible enough to be employed for future research in similar appraisals, at different geographic and scale aggregation levels, for public projects including but not limited to poverty reduction.

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