The Determinants of Poverty: Case of Indonesia

Author(s):  
Lilik Sugiharti ◽  
Martha Ranggi Primanthi

Objective - The objectives of the study were to analyze the general picture of poverty, and determinants of poverty in Indonesia. Understanding poverty characteristic is a main point for designing an effective poverty reduction strategy. During the last five years Indonesia has experienced a slowing down growth and the poverty rates has declined slightly. Some provinces or regions have managed to reduce the poverty well, while others have been slower, and also the distribution of the poor is uneven across both rural and urban, generally the rural is more than urban area. Methodology/Technique - Factors determining poverty of households were estimated and anayzed using a logit regression model, and it is found that such demographic factors as gender and age of households head, size of households, factors of production included accessibility to the technology and credit, working status, and education attainment, and also geographic characteristics significantly explain reasons for being poor. Moreover, increasing for accessibility of households to the technology and credit, reducing the size of households, and increasing an education attainment especially in rural area are important to do as a government priority intervention. Findings - The results of the determinants of poverty in Indonesia shows that poor households are those with large number of dependents and equipped with limited education access, and the majority of these households live in rural area. Novelty - Study suggests that increasing for accessibility of households to the technology and credit, reducing the size of households, and increasing an education attainment especially in rural area are important to do as a government priority intervention or policy implications. Type of Paper: Empirical Keywords: Logit Regression; Poverty Reduction, Indonesia. JEL Classification: I21, I22, I24.

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Judith Ndossi ◽  
Essegbemon Akpo ◽  
Chris O. Ojiewo ◽  
Justin Ringo ◽  
Eliud Kongola ◽  
...  

Abstract Background Seed systems are considered as a vehicle through which the sustainable agricultural intensification can be achieved. However, most sub-Saharan African countries have been ineffective to provide sufficient incentives for stakeholders to consistently invest in the seed systems specifically for crops like sorghum. This study was therefore conducted to uncover investment opportunities for stakeholders in the sorghum seed systems to attain an impact-oriented seed production and delivery systems. Results The study applied descriptive statistics, Logit regression model, and Gross margin to analyze possible areas for investments. Descriptive statistics analyzed the percentage of farmers using sorghum improved varieties and sources used to obtained improved variety seeds. Logit regression model was applied to analyze factors correlating with planting of improved seeds. Gross margin was applied to show profitability of growing improved sorghum seeds and grain. Findings revealed that 39.2% of the sampled farmers were growing improved sorghum variety seeds. Farmers obtained improved variety seeds from both informal (57.8%) and formal (42.2%) sources. Logit estimates indicate that variety preference, unavailability of seeds, resistance to diseases, and drought had significant correlation with planting of improved variety seeds. Seed companies and quality declared seed (QDS) producers earned high margin of 53,08,900 Tanzanian Shillings per hectare (TZS/ha, 1 USD = 2315 TZS during the period of data collection) and 33,94,709 TZS/ha, respectively. Farmers using improved variety seed earned higher margin (8,19,805 TZS/ha) than farmers who did not use improved variety seeds (3,17,373 TZS/ha) Conclusions The identified investment opportunities were increasing number of farmers using improved variety seeds that would drive increased production, distribution, and marketing of quality seed. The large number of farmers still sourcing seed from the informal channel provides avenue to reach out to these farmers through demand creation and wide variety popularization meeting farmer preferences. The huge margin seed producers make provides good incentive to drive private seed companies and individual seed entrepreneurs to make sustainable business out of sorghum seed. The policy implications for reviving sorghum production and productivity are further discussed.


2012 ◽  
Vol 7 (1) ◽  
pp. 35-48 ◽  
Author(s):  
Omer Gokcekus ◽  
Dennis Nottebaum

AbstractThis study develops thirteen criteria to detail diverging direct shipping laws of the U.S. states. It also investigates why some states have prohibitive laws by utilizing a logit regression model. Regression results provide strong support for public finance and special interest arguments: It appears that states concerned about incurring losses in tax revenues, that is, that are heavily dependent on federal aid and have low state revenues, and protecting the wholesalers and retailers that benefit from the three-tier system (at the expense of wineries and wine drinkers) are most likely to have a prohibitive law. (JEL Classification: D72, H71, Q18)


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nguyen Huu Thu ◽  
Pham Bao Duong ◽  
Nguyen Huu Tho

PurposeThis study aims to examine the accessibility, loan purposes and effects of informal credits on poor households in Northern mountainous Vietnam.Design/methodology/approachThis study used primary data collected directly from surveying 402 poor households in Thai Nguyen province using a well-designed questionnaire. The probit model is employed to specify which factors affect access to informal credit, the tobit model is used to estimate the borrowing functions specified. In addition, descriptive statistical analysis is also used to describe the accessibility, purposes and effects of informal credit on poor households.FindingsThe results show that there is a considerably high proportion of informal borrowings from relatives, neighboring villagers, professional moneylenders, rotating saving and credit groups, trade credits and mortgages. Labor force ratio, social capital and residential land areas are the key determinants of poor households' informal borrowings. The purposes of borrowing are diverse. The informal loans also have certain significant effects on poverty reduction and the welfare of poor households.Research limitations/implicationsThe effects of the informal loans on house welfare should be quantitatively evaluated.Practical implicationsThe findings from these analyses allow us to draw relevant policy implications for the development of rural finance in other low-income, developing countries.Originality/valueThis research contributes to the body of published literature in several ways. Firstly, it provides understanding of the performance of the informal financial subsector. Secondly, the informal subsector of rural finance is evaluated in close relation to the formal subsector.


SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110326
Author(s):  
Biyue Lin ◽  
Shoukat Iqbal Khattak ◽  
Bei Zhao

China’s 21st-Century Maritime Silk Road Project (involving USD1 trillion) is one of the most ambitious projects in human history. Although this trans-continental project presents tremendous development opportunities for businesses and cities within and outside China, there is nascent progress in some cities, for example, Quanzhou. With limited development prospects, enterprises are considering partial or total relocation to central cities to overcome bottlenecks and exploit future opportunities. Past relocation literature offers limited and contrasting insight into enterprise relocation’s antecedents and outcomes, especially for China. This article has attempted to fill this gap by exploring the factors affecting relocation decisions in Quanzhou using a sample of 441 employee self-reports. The logit regression model indicated that employees and cadre groups consider four factors before headquarter relocation, including preferential policies and industry environment (e.g., subsidies and tax), management resources (e.g., standardized management), intelligence and software resources (e.g., brand awareness), and international communication and market space (e.g., market openness). The intelligence and software resources were the least prioritized relocation factors among all four factors. The article presents important policy implications based on current results.


Urban Science ◽  
2021 ◽  
Vol 5 (1) ◽  
pp. 22
Author(s):  
Valdemir Antoneli ◽  
Manuel Pulido-Fernández ◽  
João Anésio Bednarz ◽  
Leonardo Brandes ◽  
Michael Vrahnakis ◽  
...  

The catchment area of River das Antas (Irati, Paraná, Brazil) is of high importance both for human consumption and irrigation. Within Irati, this river passes through a rural area and through the city of Irati, crossing both poor and rich neighbourhoods. We selected three study areas downstream (a rural area, poor community, and rich neighbourhood) in which we measured turbidity, the concentration of sediments and pH during rainy days. Our results showed downstream trends of increasing turbidity and concentrations of sediments with decreasing pH. The values of turbidity and of concentration of sediments were significantly different in the rural area, while the pH values were significantly different between the three study areas. These findings highlight the effect of agricultural activities in the generation of sediments and turbidity. The—presumably expected—effects of organic urban waste from the poor neighbourhood were also detected in the pH values. We conclude that efforts should be made to ensure that land planning and training/education programmes on sustainable farming practices are undertaken by the authorities to reduce water pollution and its effects on water bodies during rainfall events, since paving streets is not a feasible option in the short term due to the high costs associated with this measure.


2021 ◽  
pp. 097226612110055
Author(s):  
Sanjiv Kumar ◽  
S. Madheswaran ◽  
B. P. Vani

Forerunning programmes of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which were designed as poverty elimination programmes, took notice of geographical pockets of poverty and incorporated formula-based fund allocation mechanisms to poorer states and regions. The MGNREGA programme, in contrast, used a right-based ‘self-selection’ approach— relying on the initiative of households’ demand-driven strengths—to allocate need-based resources to states and regions within states. This article examines how well the demand-driven, right-based programme with self-selection allocated resources to states and regions according to their respective needs, and to what extent the benefits reached the poverty pockets and catered to the poorest, weakest and neediest households. We find that adequate resources did not reach the poorest states and regions, substantial numbers of poor households remained outside the programme or were deemed underserved, and there was a pronounced programme capture by elite states. The article explores causes and consequences of capacity limitations and low absorption pulls among states, and points to policy implications and ways forward.


2021 ◽  
pp. 65-67
Author(s):  
Harivansh Chopra ◽  
Tanveer Bano ◽  
Niharika Verma ◽  
Gargi Pandey

Universal Health Coverage aims to provide essential health services to all while providing protection from catastrophic expenditure on health. To mitigate the economics of health expenditure, health insurance is one of the important tool. Hence, this study was conducted to nd out the awareness and practice of health insurance coverage in rural and urban Meerut.90 households were studied in both rural and urban area. Awareness was higher in urban area but coverage was higher in rural area. Awareness and coverage were found to be signicantly associated with poverty status in rural area of Meerut.


2016 ◽  
Vol 118 (8) ◽  
pp. 1946-1959 ◽  
Author(s):  
Mariantonietta Fiore

Purpose – Buying process directly from producers is an expanding trend in advanced economies; then direct sales can be considered a crucial driver in wine sector in order to cope with global challenges and achieve a competitive advantage. The purpose of this paper is to investigate if management aspects and marketing innovation propensity could have an important role in choosing direct sale tool. Design/methodology/approach – A qualitative analysis in Apulia region (Italy) was carried out. Data have been collected through a face to face and web-based exploratory survey submitted to a sample of 280 cellars participating in an Integrated Projects of Food Chains. A logit regression model was run in the research design. Findings – Findings showed that most of interviewed wineries, mainly characterized by agricultural production and direct approach to customers, are more likely inclined to direct sales choice. Research limitations/implications – The sample size could be expanded (e.g. to include farms from other regions or not belonging to an integrated projects). Practical implications – Managerial implications give insight on the role of direct sales as an opportunity to obtain aggregated value for agri-products and to increase bargaining power of farmers. Social implications – Food direct sales could have the important task of straightening the social proximity between rural and urban stakeholders, increasing trust and connection between producers and consumers. Originality/value – This paper can shed some light on this topic, since direct food sales across regions is less investigated than direct marketing.


2017 ◽  
Vol 2017 ◽  
pp. 1-12
Author(s):  
Yibin Ao ◽  
Jiayue Li ◽  
Yan Wang ◽  
Changjiang Liu ◽  
Shuhong Xu

The disparity between construction targets and the real needs of farmers in the construction of rural facilities is a problem that has led to a failure in meeting farmers’ demands. This paper investigates farmers’ satisfaction and the influencing factors of rural facilities through factor analysis and logit regression model. This research led to three key findings: (1) overall satisfaction of farmers of rural facilities is below average level; (2) farmers’ satisfaction is affected mainly by the horizontal comparison, road facilities, electricity and signal facilities, reconstruction of public toilets, irrigation facilities, cultural and recreational facilities, renovation of fuel and kitchen, healthy facilities, village planning and renovation, and income factor; (3) farmers’ needs are shifting from production to life type. This paper is the foundation of further analysis of the effects of significant factors on farmers’ satisfaction, providing a theoretical basis for the construction of “bottom-up” and “top-down” decision-making mechanism.


Green Finance ◽  
2021 ◽  
Vol 3 (3) ◽  
pp. 268-286
Author(s):  
Paul Adjei Kwakwa ◽  
◽  
Frank Adusah-Poku ◽  
Kwame Adjei-Mantey ◽  
◽  
...  

<abstract> <p>Access to clean energy is necessary for environmental cleanliness and poverty reduction. That notwithstanding, many in developing countries especially those in sub-Saharan Africa region lack clean energy for their routine domestic activities. This study sought to unravel the factors that influence clean energy accessibility in sub-Saharan Africa region. Clean energy accessibility, specifically access to electricity, and access to clean cooking fuels and technologies, were modeled as a function of income, foreign direct investment, inflation, employment and political regime for a panel of 31 sub-Saharan countries for the period 2000–2015. Regression analysis from fixed effect, random effect and Fully Modified Ordinary Least Squares show that access to clean energy is influenced positively by income, foreign direct investment, political regime and employment while inflation has some negative effect on its accessibility. The policy implications from the findings among other things include that expansion in GDP per capita in the sub-region shall be helpful in increasing accessibility to clean energy. Moreover, strengthening the democratic institutions of countries in the region shall enhance the citizens' accessibility to clean energy. Ensuring sustainable jobs for the citizens is necessary for access clean energy.</p> </abstract>


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