scholarly journals Spatial Dimensions of Economic Growth, Redistribution, and Poverty Reduction During the Yudhoyono Period in Indonesia

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Witri Mukti Aji
Keyword(s):  
Economic Growth ◽  
Regional Differences ◽  
Decomposition Method ◽  
Poverty Reduction ◽  
Growth Index ◽  
Growth Indices ◽  
Poor Growth ◽  
Household Expenditures ◽  
Spatial Dimensions ◽  
Capital Development

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.

scholarly journals Growth, Inequality, and Poverty: An Analysis of Pro-Poor Growth in Indonesia

2018 ◽  
Author(s):  
Yudistira Andi Permadi
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Growth Index ◽  
Poor People ◽  
Poor Growth ◽  
Household Expenditures ◽  
Services Sector ◽  
Education And Health ◽  
The Government

In the concept of pro-poor growth, economic growth accompanied by fair income distribution will accelerate the rate of poverty reduction. By employing extensive data of household expenditures and other economic indicators, the study will examine the performance of economic growth in Indonesia whether it has been pro-poor over the period 2005-2013. We employ two methods in this article, Growth Incidence Curve (GIC) method, and Pro-Poor Growth Index (PPGI) method. By applying the GIC method, our empirical results indicate that economic growth in Indonesia has not been pro-poor during the observed period. The curve shows that the highest income population enjoys increased consumption more than the poorest population. Furthermore, PPGI method has revealed that economic growth, inequality, and an interaction term between economic growth and inequality have been significant to influence poverty incidence in Indonesia. Our empirical result also reveals that among manufacturing, agriculture, and services sector; it was manufacturing that has successfully reduced the number of the poor, while agriculture unexpectedly had a devastating impact on the number of poor people. The services sector, meanwhile, had not contributed to poverty alleviation. Furthermore, none of the government spending in education and health that significantly contributes to poverty alleviation.  

scholarly journals Pro-Poor Growth in Different Economic Sectors in Iran: A Zenga Index Approach

2021 ◽  
Author(s):  
Mohammad Sharif Karimi ◽  
Sohrab Delangizan ◽  
Elham Heshmati daiari
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Service Sector ◽  
Service Industry ◽  
Growth Index ◽  
Jel Classification ◽  
Economic Sectors ◽  
Poor Growth

Abstract Poverty is one of the most important issues in developing countries; thus, poverty and poverty reduction have always been a concern for nations. This unbearable social phenomenon, which must be controlled, is out of control in most of developing countries. This study aimed to develop coordination and interrelation between economic growth, inequality, and poverty in Iran. Therefore, this study was conducted to determine how much economic growth reduces poverty by calculating pro-poor growth index (PEGR) for service, industry, and agriculture sectors in urban and rural areas in Iran from 2005 to 2018. Besides, it assessed the effect of changes in the average income and the distribution of income on poverty. We identified economic sectors with pro-poor growth. The findings of the research indicated that there was pro poor growth just in the rural service sector in Iran. In addition, although the distribution effects decreased poverty in the other sectors, total poverty increased under the period because of the negative growth. Also, the Zanga index results indicate that inequality has decreased in all sectors during the period.Jel Classification: O47, D33, I32, O15, D63

scholarly journals Pro-poor Growth: Concepts and Measurement with Country Case Studies (Distinguished Lecture)

2003 ◽  
Vol 42 (4I) ◽  
pp. 417-444 ◽  
Author(s):  
Nanak Kakwani ◽  
Hyun H. Son
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Poverty Reduction ◽  
Poor Growth ◽  
The Poor ◽  
Actual Growth Rate ◽  
Actual Growth ◽  
The Republic ◽  
Increasing Function ◽  
Proportional Reduction

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.

scholarly journals Where does Pro-Poor Growth Occur in Vietnam?

2015 ◽  
Vol 22 (1) ◽  
pp. 20-41
Author(s):  
Bao Nguyen Hoang
Keyword(s):  
Economic Growth ◽  
Gini Coefficient ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Equation System ◽  
Simultaneous Equation ◽  
Poverty Index ◽  
Poor Growth ◽  
Simultaneous Equation System ◽  
The Impact

Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient.

scholarly journals A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case

2020 ◽  
Vol 12 (5) ◽  
pp. 1728 ◽  
Author(s):  
Ismael Ahamdanech ◽  
Carmelo García-Pérez ◽  
Mercedes Prieto-Alaiz
Keyword(s):  
Economic Growth ◽  
Stochastic Dominance ◽  
Poverty Reduction ◽  
Statistical Tests ◽  
Regional Growth ◽  
Growth Effect ◽  
Poor Growth ◽  
The Great Recession ◽  
Income Data ◽  
The Difference

In this paper, we analyze, in a novel way, the nature of economic growth in Spain after the Great Recession, in relation to its effect on poverty reduction. We use a statistical test to analyze the pro-poorness nature of economic growth using a stochastic dominance approach, not used in this context so far. We decompose changes in the difference in generalized Lorenz ordinates into a growth effect and an inequality effect and apply this to formal Spanish income data statistical tests based on dominance methods. We found that growth was pro-poor in Spain as a whole between 2013 and 2017. As regards regional growth effects, we conclude that growth was weakly pro-poor in seven of Spain’s 17 regions, it was neither pro-poor nor anti-poor in nine regions, and only weakly anti-poor in one region.

Inclusive Growth in Africa

2014 ◽  
pp. 153-174
Author(s):  
Mthuli Ncube
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Social Inclusion ◽  
Growth Index ◽  
Well Being ◽  
Inclusive Growth ◽  
African Countries ◽  
Poor Growth ◽  
Per Capita ◽  
Growth Indicators

This chapter examines the weak inclusion character of Africa’s economic growth and its implications for employment, income distribution, demographics, and the middle class. After outlining Africa’s impressive growth in the last decade which has not created jobs and not reduced poverty fast enough, it discusses various approaches to inclusive growth in relation to gross domestic product per capita, sub-groups, and pro-poor growth, well-being, and opportunities as opposed to outcomes. It also considers four categories of inclusive growth indicators, namely economic inclusion, social inclusion, spatial inclusion, and political/institutional inclusion. Under economic inclusion, an approach for dealing with inequality is presented. Finally, the article describes an inclusive growth index for African countries for the period 2006–2010, adjusted for inequality.

The Study of Pro-poor Growth and Poverty Reduction in Pakistan (1999–2006)

Social Change ◽  
2012 ◽  
Vol 42 (2) ◽  
pp. 249-261 ◽  
Author(s):  
Khalid Zaman ◽  
Muhammad Mushtaq Khan ◽  
Mehboob Ahmad ◽  
Muhammad Shabir
Keyword(s):  
Growth Rate ◽  
Present Article ◽  
Growth Rates ◽  
Poverty Reduction ◽  
Growth Index ◽  
Poor Growth ◽  
Federal Policies ◽  
The Poor

The aim of this study is to examine different approaches to measuring pro-poor growth rate in the context of Pakistan’s sub-sectors, that is, agriculture, manufacturing, commodity producing and services sectors. This research is extended within the phenomenon of Pro-Poor Growth Index (PPGI) and Poverty Equivalent Growth Rates (PEGR) which is anticipated by Kakwani and Pernia (2000) and Kakwani and Son (2004) in the literature. The present article examines as to what extent the poor have benefited from growth while taking into account the magnitude of growth and the benefits of growth achieved by the poor between 1999 and 2006. The research concludes that growth is classified anti-poor in the overall Pakistan’s sub-sectors due to pro-rich federal policies.

scholarly journals POVERTY AND ECONOMIC GROWTH: A REVIEW

2016 ◽  
Vol 22 (1) ◽  
pp. 156-175 ◽  
Author(s):  
Marinko ŠKARE ◽  
Romina PRŽIKLAS DRUŽETA
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Relevant Literature ◽  
Causal Link ◽  
Poor Growth ◽  
Research Issues ◽  
The Poor ◽  
The Rich ◽  
Similar Growth

The objective of this paper is to review and attempt a synthesis of the relevant literature on growth versus poverty, and to analyze the causal link between the two phenomena. Research issues that drive our study are: Does economic growth tend to “raise all boats” as Kuznets (1955) pointed out? What is the role of the pattern of growth in the process of development? Which factor must we consider in designing appropriate pro-poor growth policies? This paper finds considerable variation in the poverty–reducing effectiveness of growth across time and authors. Also, our analysis speaks in favour of the fact that as growth occurs poverty reduces, no matter the level of inequality. Identically, similar growth pattern has different effects on poverty reduction. We conclude that growth is good for poverty alleviation but it is not enough. The extent to which growth reduces poverty depends upon how we measure poverty, and upon absorptive capacity of the poor, the pace and pattern of growth. In times when the rich are getting richer and the poor are getting poorer, “trickle-down” effect becomes a scenario that need to be reviewed.

Constituting A Root Map Towards Inclusive Growth: A Comparative Analysis

2021 ◽  
Vol 40 (1) ◽  
Author(s):  
Adnan Ali Shahzad ◽  
Hafiz Asim ◽  
Faran Ali
Keyword(s):  
Economic Growth ◽  
Comparative Analysis ◽  
Poverty Reduction ◽  
Growth Index ◽  
Developed Countries ◽  
Emerging Countries ◽  
Inclusive Growth ◽  
Economic Activities ◽  
Income Disparities ◽  
Economic Growth Rates

Developing and emerging countries of Asia have shown a tremendous improvement in economic growth rates couple with the significant strides in extreme poverty reduction. However, most of the economies are still facing some challenges like income and non-income disparities in sharing benefits and participation into social and economic activities. It requires attention that economic growth must be accompanied by reduction in poverty and income & non-income inequalities, and promoting equitable participation, i.e. growth must be inclusive. To address these challenges, present study presents a pioneer work to construct a unique but comprehensive inclusive growth index (IGI) over the period of last two decades for 17 Asian and 8 developed countries. The study made a comparative analysis of inclusive growth performances of developing and emerging countries of Asia and compared their final score with the benchmark set by developed countries of the world. The study highlighted the clusters of variables which required attention in developing Asia to converge with emerging Asia, and in emerging Asia to converge with developed world. In short, the study provides a root map for developing countries to merge with emerging countries, and for emerging countries to merge with developed countries.

scholarly journals Analisis Pro-poor Growth Melalui Identifikasi Pengaruh Pertumbuhan Ekonomi Terhadap Ketimpangan Pendapatan dan Kemiskinan Di Indonesia Tahun 2010-2015

2019 ◽  
Vol 2 (2) ◽  
pp. 67
Author(s):  
Azka Muthia
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Panel Data ◽  
Poverty Reduction ◽  
Negative Influence ◽  
Panel Regression ◽  
Poverty Eradication ◽  
Poverty Level ◽  
Poor Growth ◽  
Interdependent Relationships

<p>Economic growth, income distribution inequality, and poverty should have interdependent relationships with one another. In 2010 to 2015, Indonesia experienced a decrease in poverty but its economic growth slowed and the Gini ratio was stagnant. Therefore the author conducted research to analyze the influence of economic growth and income disparity on poverty eradication in Indonesia to find out the level of economic growth influence whether it is pro-poor or anti-poor and to find out the sectors influencing the poverty eradication. The panel data obtained from 33 provinces in Indonesia from 2010 to 2015 were analyzed. The result of this study showed that the economic growth had negative influence on poverty level. Based on the influence of elasticity value of net poverty on the economic growth, the economic growth can minimize the poverty. The economic growth in Indonesia for 2010-2015 was pro poor, but the value of gross elasticity and net poverty on Indonesia's economic growth is less elastic. As a result, poverty reduction driven by economic growth was not too large.</p><p><strong>Keywords : </strong>pro poor growth, panel regression analysis, poverty</p>

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