scholarly journals THE EFFECT OF ECONOMIC GROWTH AND HUMAN DEVELOPMENT INDEX ON POVERTY IN INDONESIA

2021 ◽  
Vol 3 (Number 1) ◽  
pp. 42-53
Author(s):  
Zulfikar Hasan

Indonesia’s economic growth, which ranges from 5% - 6% per year, apparently has not been able to reduce the number of poor people. There has even been an increase in the total of poor people, which is currently around 37 million people. A World Bank study shows that almost 50% of Indonesia’s population is categorised as “poor” and “on the verge of poverty”. The problem of poverty deserves significant attention from all parties. Economic growth accompanied by an increase in the number of poor people is certainly inviting several questions, such as who is enjoying the economic growth and whether the economic growth is caused by increased productivity or the use of factors of production, etc. In Indonesia, economic growth seems to be concentrated in specific sectors, while some other areas have relatively slow growth that poverty reduction is difficult. Hence, research on economic growth, human development, and poverty levels in Indonesia is warranted. The results are expected to explain the phenomenon of increasing poverty in Indonesia.

2021 ◽  
Vol 21 (1) ◽  
pp. 56
Author(s):  
Fita Purwaningsih ◽  
Suharno Suharno ◽  
Abdul Aziz Ahmad

Human Development Index (HDI) of Central Java Province in 2015-2018 is the lowest compared to other provinces in Java Island. This study aims to analyze the effect of sanitation, water access, poverty, population, and economic growth on Human Development Index in Central Java Province at 2015-2018. The method used in this research is multiple linear regression with a panel data approach. The results show that sanitation, population, and economic growth have a positive and significant effect on the Human Development Index in Central Java Province. Poverty ha\ve a negative and significant effect on the Human Development Index in Central Java Province. Meanwhile, access to water has no effect on the Human Development Index in Central Java Province. This finding implies the need for equitable sanitation development for the population in Central Java Province. In addition, the government needs to increase economic growth and reduce the number of poor people.


2017 ◽  
Vol 15 (2) ◽  
pp. 113
Author(s):  
Yunita Firdha Kyswantoro

Disadvantaged areas are districts whose areas and communities are less developed when compared to other regions on a national scale. Java Island as the contribution of the highest economic growth in Indonesia in fact accounted for 6 of 122 disadvantaged areas in Indonesia, namely Kab. Bondowoso, Kab. Situbondo, Kab. Bangkalan, Kab.Sampang, Kab. Pandeglang, Kab. Lebak. One of the criteria of disadvantaged areas is human resources, this can be measured through HDI (Human Development Index). The number of poor people, labor force and GRDP per capita are some factors that are considered to illustrate the influence of HDI in 6 disadvantaged areas. This research used Random Effect Model (REM) panel data regression in 6 disadvantaged areas in Java Island 2010 - 2016. The result of this research, labor force variable has no significant effect to Human Development Index (HDI). While the number of poor and PDRB perkapita have a significant effect on HDI in 6 disadvantaged areas in Java. It is therefore an effective way to accelerate the growth of economic growth in underdeveloped areas related to HDI through the decline of the number of poor people with the creation of labor-intensive jobs which in turn will increase the per capita GDP. Thus, increasing GRDP per capita will increase Human Development Index (HDI) where HDI is one indicator in economic growth of a region.


2021 ◽  
Vol 16 (4) ◽  
pp. 689-704
Author(s):  
Henny Nurafni ◽  
M. Rachmad. R ◽  
Muhammad Safri

The poverty that occurs in various regions in Indonesia is an issue that is always interesting to discuss. This research aims to analyze the determinants of poverty and their relationship with the district/city alleviation program in Jambi Province. The data used in this study are secondary in 2013-2018. The analysis results show that the factors affecting district/city poverty in Jambi Province in the 2013-2018 period were the Human Development Index (HDI) and Economic Growth. Based on several variables used, the poverty determinant that significantly influences district/city poverty in Jambi Province is the Human Development Index (HDI) and economic growth. Referring to the analysis results, it can be seen that there is a strong relationship between poverty alleviation programs and poverty reduction. Therefore, this study recommends implementing a strategy to improve the quality and quantity of human resources in managing natural resources to enhance the economy of districts/cities in Jambi Province to reduce poverty.


2018 ◽  
Vol 7 (3) ◽  
pp. 219
Author(s):  
KADEK BUDINIRMALA ◽  
NI LUH PUTU SUCIPTAWATI ◽  
KETUT JAYANEGARA ◽  
I PUTU EKA NILA KENCANA

One indicator of the success of development programs undertaken is the declining percentage of the poor, defined as the ratio of the number of people classified as poor to the total population. For Bali province, despite its economic growth is higher than national rate; 6.03 percent and 6.24 percent compared to 4.88 percent and 5.02 percent in 2015 and 2016, respectively; the poor are still observed in this province by 4.15 percent of its 4.2 million population in September 2016. In order to make development programs in Bali more effective to decrease the number of poor people, significant determinants of poor have to be recognised. The purpose of this work is to model and to determine the significant factor(s) that affect the percentage of poor in Bali province by applying panel data analysis. Percentage of poor for period 2007 to 2015 is positioned as the dependent variable while economic growth, unemployment rate, labor force participation rates, total population, and human development index as the independent ones. We found the best model to describe the causal relationship among variables is fixed effect model and two predictors, the economic growth rate and human development index, were significant in affecting the number of poor in Bali province.


2020 ◽  
Vol 8 (1) ◽  
Author(s):  
Ribka Sari Butar Butar

The results showed that the number of poor people and government expenditures from the aspect of health funds had a significant effect on the HDI. While open unemployment and government spending from the aspect of education fund did not significantly affect the Human Development Index. The success of the economic development of a region can be seen from the high economic growth, with the increase of economic growth is expected also can improve the welfare of society and increase human development with indicator of Human Development Index (HDI).


2021 ◽  
Vol 8 (12) ◽  
pp. 663-685
Author(s):  
Marisa Br Sinuraya ◽  
Raina Linda Sari ◽  
Irsad Lubis

The research aims to examine and analyze effects of economic growth, human development index (HDI), population, unemployment, and investment on poverty levels in the North Sumatra Province. The research uses quantitative data type, while the data source is obtained from secondary data in the quarterly form of 2010-2019. The data are analyzed with the model of Autoregressive Distributed Lag (ARDL) analysis. The results of ARDL analysis of economic growth variables and HDI have negative and significant effects on poverty levels in the short term and long term. Unemployment variable has a significant positive effect on poverty levels in the short term however insignificant in the long term and investment variable has an insignificant positive effect on the poverty level in the short and long term. Keywords: Economic Growth, HDI, Population, Unemployment, Investment, Poverty.


2020 ◽  
Vol 18 (2) ◽  
pp. 95-104
Author(s):  
Imade Yoga Prasada ◽  
Tri Fatma Mala Yulhar ◽  
Tia Alfina Rosa

Poverty is currently a major problem that must be resolved in various regions in Indonesia, including areas in Java. Java Island is the island with the highest number of poor people compared to other islands in Indonesia. The aim of this study was to determine the determinants of poverty levels in Java and formulate policy recommendations that can be implied to overcome poverty. Research variables have used secondary data from six provinces in Java sourced from the Central Statistics Agency, namely poverty level data, Human Development Index (HDI), inflation rate data, open unemployment rate data, and Regional Minimum Wage data (UMR). The data was compiled into panel data and analyzed using OLS Model. The analysis showed that the determinants of poverty levels in Java were inflation rates, Human Development Index, Regional Minimum Wages, and open unemployment rates, so that all determinants need to be considered properly to formulate policy recommendations that able to overcome poverty in Java. 


2020 ◽  
Vol 8 (1) ◽  
pp. 83
Author(s):  
Ribka Sari Butar Butar ◽  
Mrs Rahmanta

The results showed that the number of poor people and government expenditures from the aspect of health funds had a significant effect on the HDI. While open unemployment and government spending from the aspect of education fund did not significantly affect the Human Development Index. The success of the economic development of a region can be seen from the high economic growth, with the increase of economic growth is expected also can improve the welfare of society and increase human development with indicator of Human Development Index (HDI).


2020 ◽  
Vol 11 (1) ◽  
pp. 10-21
Author(s):  
Yulius Laga ◽  
Anthonia Karolina Rejo Lobwaer

This paper is a form of concept development, with the variable allocation of village funds (X1), the number of poor people (X2), Human Development Index (X3) and Economic Growth (Y) in East Nusa Tenggara Province in 21 districts. This study uses secondary data obtained from the Central Statistics Agency (BPS) of NTT Province from 2015 to 2019. Descriptive Statistics and Panel Data Regression Analysis using E-Views 10 using the Fixed Effect Model (FEM). The results of hypothesis testing (t-test) shows the allocation of village funds, has a positive and significant effect on Economic Growth (p-value: 0,000 <0.05) and (t-count = 7.81> t-table = 1.66) . While the number of poor people and the Economic Human Development Index (HDI) have no influence on Economic Growth because the probability value is more than 5 percent (0.05). The magnitude of the effect of Adjust R-Square (R2) of 0.35 or 35 percent of economic growth variables can be explained by the variable Village Fund Allocation, Number of Poor Population, and Human Development Index. This reflects the economy grows to be done, and not only from the Village Fund Allocation but has investment space in the priority sectors of each district that is able to reduce poverty and boost the Human Development Index.


Author(s):  
Frances Stewart ◽  
Gustav Ranis ◽  
Emma Samman

This chapter explores the interactions between economic growth and human development, as measured by the Human Development Index, theoretically and empirically. Drawing on many studies it explores the links in two chains, from economic growth to human development, and from human development to growth. Econometric analysis establishes strong links between economic growth and human development, and intervening variables influencing the strength of the chains. Because of the complementary relationship, putting emphasis on economic growth alone is not a long-term viable strategy, as growth is likely to be impeded by failure on human development. The chapter classifies country performance in four ways: virtuous cycles where both growth and human development are successful; vicious cycles where both are weak; and lopsided ones where the economy is strong but human development is weak, or conversely ones where human development is strong but the economy is weak.


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