scholarly journals The Nexus of Economic Growth and Poverty Reduction in East Java

Author(s):  
Hengki Permana Saputra ◽  
Susilo ◽  
Rachmad Kresna Sakti
2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model


Author(s):  
Teguh Santoso ◽  
Bayu Kharisma

The high rate of inflation has the potential to increase poverty because it can reduce people's purchasing power, where if inflation rises significantly it can shift the people who are categorized as not poor, become vulnerable to poverty, almost poor and even poor. The aims of this study are to analyze the development of macroeconomic indicators, namely inflation and economic growth that are associated with poverty levels in the city of Bandung. The methodology used in this study is descriptive analysis and the ARMA (autoregressive moving average) model. The results showed that the high inflation in the city of Bandung compared to national and West Java inflation carries its own burden for the economy of the community, where purchasing power will decrease when inflation rises significantly and will have an impact on people's welfare. Inflation in the city of Bandung is often due to the price of food commodities (volatile food inflation). In addition, the high economic growth in the city of Bandung is not directly proportional to the decline in poverty levels. This shows that the quality of economic growth in the city of Bandung has problems that need attention. Therefore, local government in their efforts to encourage economic growth must prioritize poverty reduction and inequality.


2021 ◽  
Vol 1 (1) ◽  
pp. 124-127
Author(s):  
Novi Firmawati ◽  
◽  
Budi Sasongko

This study examines the role of education in improving technology adoption as reflected in technology inclusion, poverty alleviation and efforts to increase community income which is reflected in economic growth. This study uses secondary data from world banks and processed regression using the moving average autoregression method. We found that education investment and technology inclusion were positively related to economic growth. And,negatively related to probability. This indicates that education plays a role in encouraging technological inclusion which reflects technological adaptation and encourages economic growth which is an indicator of the prosperity of the people in Indonesia which is strengthened by a negative relationship with poverty which indicates that education plays an important role in poverty alleviation


Author(s):  
Abel Kinyondo ◽  
Joseph Magashi

Poverty reduction has been a difficult milestone for Tanzania to achieve despite recording remarkable economic growth over the past decade. This is because the attained growth is not inclusive, in that sectors contributing to this growth employ fewer people. Given the fact that agriculture continues to employ the majority of people in Tanzania, efforts to improve livelihoods should necessarily be geared towards transforming the sector. It is in this context that using a sample of 3,000 farmers from 13 regions of Tanzania; this Tanzania, this study set out to examine challenges facing farmers and their respective solutions following the sustainable livelihood framework. Findings show that improving farmers’ livelihoods would entail concerted efforts by the government to avail to farmers, quality and affordable seeds, fertilizer, agricultural infrastructures, subsidies, extension services, markets, information alert, affordable loans, and areas for pastures. This implies that the government needs to allocate enough funds to the agricultural sector if farmers’ needs are to be met. We note, however, that government’s allocation to the sector has alarmingly generally been exhibiting a declining trend for the past four years. It is against this background that we strongly recommend that the government rethinks its position and prioritize the agricultural sector in its budget.


2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Witri Mukti Aji

This research explores the spatial dimensions of economic growth, redistribution, and poverty reduction in Indonesia during the Susilo Bambang Yudhoyono period (i.e., from 2004 to 2014) using the poverty decomposition method, the growth incidence curve, and several pro-poor growth indices. I gathered my data from the annual National Socio-economic Surveys conducted in Indonesia between 2004 and 2014. Analyzing this data, my thesis presents three key economic insights about the Susilo Bambang Yudhoyono period:1) poverty incidence significantly declined between 2004 and 2014, 2) the economic growth that occurred during this period was generally not pro-poor, made evident by an upward sloping growth incidence curve, and 3) regional differences exist in the shape of the growth incidence curve; the pro-poorness of economic growth therefore varies between provinces. Using the classification system proposed by Kakwani and Pernia (2000), I classify provinces into the following five groups with respect to their pro-poor growth index (PPGI). Our empirical results support the pro-poor growth in a nation. However, some provinces such as North Maluku, Gorontalo and Bengkulu experienced non-pro-poor growth and weakly pro-poor. To promote the pro-poor growth in all provinces, the governmental supports in infrastructure and human capital development are essential for the above lagged provinces. Keywords: Household Expenditures; Economic Growth; Redistribution; Poverty Reduction; Spatial Dimensions; Inequality; Poverty Decomposition Method; Growth Incidence Curve; Pro-Poor Growth Indices.


2003 ◽  
Vol 42 (4I) ◽  
pp. 417-444 ◽  
Author(s):  
Nanak Kakwani ◽  
Hyun H. Son

This paper looks into the interrelation between economic growth, inequality, and poverty. Using the notion of pro-poor growth, we examine the extent to which the poor benefit from economic growth. First, various approaches to defining and measuring propoor growth are scrutinised using a variety of criteria. It is argued that the satisfaction of a monotonicity axiom is a key criterion for measuring pro-poor growth. The monotonicity axiom sets out a condition that the proportional reduction in poverty is a monotonically increasing function of the pro-poor growth measure. The paper proposes a pro-poor growth measure that satisfies the monotonicity criterion. This measure is called a ‘poverty equivalent growth rate’, which takes into account both the magnitude of growth and how the benefits of growth are distributed to the poor and the non-poor. As the new measure satisfies the criterion of monotonicity, it is indicative that to achieve rapid poverty reduction, the poverty equivalent growth rate—rather than the actual growth rate—ought to be maximised. The methodology developed in the paper is then applied to three Asian countries, namely, the Republic of Korea, Thailand, and Vietnam.


Author(s):  
Lettiah Gumbo ◽  
Precious Dube ◽  
Muhammad Ridwan

One of the most effective catalysts of economic growth of any nation is obviously financial inclusion. However, in developing countries such as Zimbabwe gender gap is still an impediment to the achievement of financial inclusion for all. Research findings for this paper show that, increasing women’s financial opportunities and financial awareness on how to access financial products and services will go a long way in reducing the gender gap. Furthermore, increasing access to and use of quality financial products and services is essential to inclusive economic growth and poverty reduction. Although the government of Zimbabwe is taking steps to increase women financial inclusiveness, research shows that women in Zimbabwe trail behind men in as far as access to financial services is concerned. Zimbabwean communities remain dominantly patriarchal and women are always lagging behind in developmental projects meant for their empowerment. This paper seeks to assess the implementation of women’s financial inclusion highlighting opportunities and barriers such as the gender gap and how this may be overcome. The study is qualitative in nature and therefore makes use of interviews and questionnaires for data collection. It is envisioned by the researchers that the research findings will be beneficial to women; their empowerment and development and national development. It is hoped to change the way in which the banking and financial sectors deal with women’s financial inclusion for the betterment of their livelihoods.  Furthermore, women’s financial empowerment will improve livelihoods of many families given the caring nature of mothers, sisters, aunts and grandmothers.


2021 ◽  
pp. 249-277
Author(s):  
Jakkie Cilliers

AbstractCilliers starts by exploring the modern history of international trade and the importance of trade to economic growth and global cooperation. The chapter then provides an overview of Africa’s trading partners, the need for greater regional integration in the continent and the challenges to achieving intra-regional cooperation. It examines the need to improve the quality of governance, bridge the infrastructure deficit and eventually focus on a manufacturing-led growth path. Reducing both tariff and non-tariff barriers could facilitate the successful implementation of African Continental Free Trade Area (AfCFTA), induce economic growth, increase per capita incomes and reduce poverty. A penultimate section models the potential impact of the AfCFTA on growth, poverty reduction and increased average incomes.


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