Poverty reduction and sectoral growth in Southeast Asia

2003 ◽  
pp. 190-204
Keyword(s):  
Southeast Asia ◽  
Poverty Reduction ◽  
Sectoral Growth

scholarly journals The Effects of Foreign Direct Investment (FDI) on Sectoral Growth and Poverty in Africa

2020 ◽  
Author(s):  
Anayochukwu Basil Chukwu ◽  
Adeolu O Adewuyi
Keyword(s):  
Foreign Direct Investment ◽  
Human Development ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Agricultural Sector ◽  
Output Growth ◽  
Policy Framework ◽  
Dynamic Threshold ◽  
Sectoral Growth ◽  
Service Sectors

Abstract Background This study examines the effects of foreign direct investment (FDI) on sectoral growth and poverty reduction in Africa. The transfer of technology into different sectors of economy through FDI has enabled many developing and emerging economies to achieve sustained economic growth and development. However, this is not the case with Africa’s growth architecture and poverty levels. A look at the region’s growth and welfare structure revealed that the FDI-growth-welfare relationship is weak when compared with those of other developing continents such as Asia and Latin America. Methods The study adopted recent causality method and simultaneous equation as well as dynamic threshold models to analyze the effect of FDI on sectoral growth and poverty. We accounted for sectoral spillover effect, heterogeneity, simultaneity and cross section dependence in our modeling. Results Main findings from our results suggest that FDI promotes outputs of manufacturing and service sectors, but hinders that of agricultural sector, while it fosters human development. Also, the results showed that, while human development promotes output of the agricultural sector, it deters output of manufacturing and service sectors. Further results revealed that only agricultural output improves human development and welfare among countries. The dynamic threshold regression analysis showed that FDI promotes output growth in all sectors with larger effect at levels beyond the optimal HDI. Conclusions Africa’s growth architecture is weak to stimulate poverty reduction. For the region to improve its sectoral output growth and welfare using the FDI as a catalyst, a policy framework towards attracting more FDI into the three key productive sectors (especially in the manufacturing and services) is desirable for increased output and poverty reduction. However, to achieve the desired level of poverty reduction, policies should be targeted to sectors with inter-sectoral linkages especially between agricultural and manufacturing sectors along the local and international value chain.

scholarly journals GOVERNMENT PARTNERS 'SOCIAL ENTREPRENEURSHIP IN POVERTY REDUCTION

2019 ◽  
Vol 2 (2) ◽  
pp. 99
Author(s):  
Umi Hani
Keyword(s):  
Southeast Asia ◽  
Social Entrepreneurship ◽  
Poverty Reduction ◽  
Foreign Workers ◽  
Economic Community ◽  
Asean Member ◽  
The Government ◽  
Asean Economic Community

The ASEAN Economic Community was launched at the end of 2015. Whether we realize it or not, the MEA will be strongly linked to increasingly sharp competition in the Southeast Asia region. Although ideally the MEA is designed to provide benefits to all ASEAN member countries, President Joko Widodo on several occasions explained that the MEA is a competition between countries, and needs readiness for the Indonesian nation to face the MEA that is before the eyes. The question is , will Indonesia be the winner along with the ten other ASEAN members or will Indonesia only be a market? [1]The Government of Indonesia through the Minister of Manpower Regulation (Permenaker) No. 35 of 2015 which revised Permenaker No. 16 of 2015 concerning Procedures for Receiving Foreign Residents on October 23, 2015, one of which points to eliminating the need to speak Indonesian, it is one of the steps of Jokowi's government to facilitate investors so that many investors are expected to invest in Indonesia , but the concerns that arise are in revisions The Minister of Manpower Regulation Number 16 of 2015, the government has also removed the rules of obligation for foreign workers to speak Indonesian. Thus, foreign workers are now more flexible for careers in Indonesia. 

scholarly journals The Role of the Secondary Sector in Poverty Alleviation in Indonesia

2021 ◽  
Vol 2 (2) ◽  
pp. 111-128
Author(s):  
Nurfika ◽  
Jean-Claude Maswana
Keyword(s):  
Poverty Reduction ◽  
Output Growth ◽  
Labor Intensity ◽  
Secondary Sector ◽  
Sectoral Growth ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis ◽  
Socio Economic Factors

The relationship between economic growth and poverty reduction, although well established, is heterogeneous. The heterogeneity stems not only from socio-economic factors but also from the structure of output growth. In Indonesia, the secondary sector seems to be less poverty-reducing than other sectors. This study examines the impact of sectoral growth on poverty in Indonesia, with particular attention to the disaggregated secondary sector, and also analyzes the relative sensitivities of poverty reduction to the labor-intensive and non-labor-intensive sectors. The empirical analysis uses provincial panel data on Indonesia for the period 2003–2018 and employs the pooled OLS method. The results show that sectoral growth has little effect on improving the condition of the poor in Indonesia. Nevertheless, this conclusion has a high potential to be inappropriate. Perhaps a better conclusion on the linkage between sectoral growth and poverty can be drawn if the characteristics of mining-driven and nonmining-driven provinces in Indonesia are taken into account. In nonmining-driven provinces, the secondary sector pales in comparison to services in alleviating poverty. Six-sector disaggregation of the economy (with or without controlling for the distributional effect through labor intensity) reveals that, within the secondary sector, the subsectors that significantly reduce poverty in nonmining-driven provinces are mining and construction. Mining-driven provinces, however, do not display a linkage between sectoral growth and poverty. The significant role of labor intensity in determining whether sectoral growth is pro-poor suggests that adopting policies that lean toward discouraging businesses from employing labor is inadvisable.

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