How Population, Economic, Inequality and Unemployment Contribute Affect Indonesian’s Poverty

Authors

  • Willy Hutabarat Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Darussalam, Banda Aceh, Indonesia
  • Sofyan Syahnur Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Darussalam, Banda Aceh, Indonesia
  • Taufiq C Dawood Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Darussalam, Banda Aceh, Indonesia

DOI:

https://doi.org/10.56225/ijassh.v2i1.92

Keywords:

poverty headcount, poverty gap, macroeconomic variables, poverty severity

Abstract

In the globalization era, poverty is one of the world's fundamental problems, especially in developing countries. With living standards often poor in developing countries, poverty will only get worse in the future. Thus, the current study investigates the relationship between poverty with population growth, economic growth, income inequality, and the unemployment rate in Indonesia. The data used is data from 33 provinces compiled by the Indonesian Central Bureau of Statistics. The results showed that population growth positively affected poverty severity. The economic growth variable has a positive effect on the poverty rate. Income inequality has a positive effect on the poverty gap and poverty severity. Also, the unemployment rate variable positively affects the poverty rate, poverty gap, and poverty severity. Based on these findings, it is suggested that the government maintain stable population growth, create an economy that all groups can enjoy, equitable distribution of infrastructure, social and economic development, and provide more employment opportunities. In addition, a poverty alleviation policy is needed that is sustainable from time to time.

References

Abdurachman, T. Z., Syahnur, S., & Syathi, P. B. (2021). Determinants of Unemployment in the Large and Medium Industrial Sector in Indonesia. International Journal of Global Operations Research, 2(3), 110–117. https://doi.org/10.47194/ijgor.v2i3.113

Akinmulegun, S. O. (2014). Unemployment and poverty paradigm in Nigeria: Challenges and prospect. International Journal of Management and Administrative Sciences (IJMAS), 2(3), 16–23.

Anah, C. I. (2009). The relationship between population growth and poverty in Africa: a view from the south. International Journal of Development and Management Review, 4(1), 14–24.

Bergstrom, K. (2022). The Role of Income Inequality for Poverty Reduction. The World Bank Economic Review, 36(3), 583–604. https://doi.org/10.1093/wber/lhab026

Callander, E. J., Schofield, D. J., & Shrestha, R. N. (2011). Multi-dimensional poverty in Australia and the barriers ill health imposes on the employment of the disadvantaged. The Journal of Socio-Economics, 40(6), 736–742. https://doi.org/10.1016/j.socec.2011.08.001

Chowdhury, M. N. M., & Hossain, M. M. (2019). Population Growth and Economic Development in Bangladesh: Revisited Malthus. American Economic & Social Review, 5(2), 1–7. https://doi.org/10.46281/aesr.v5i2.326

Dhrifi, A. (2013). A Revisit of the Growth Inequality Poverty Relationship: The Role of Institutional Quality. International Journal of Advances in Management and Economics, 2(1), 94–102.

Dollar, D., & Kraay, A. (2004). Growth is Good for the Poor. In Growth, Inequality, and Poverty (pp. 29–61). Oxford University PressOxford. https://doi.org/10.1093/0199268657.003.0002

Donaldson, J. A. (2008). Growth is Good for Whom, When, How? Economic Growth and Poverty Reduction in Exceptional Cases. World Development, 36(11), 2127–2143. https://doi.org/10.1016/j.worlddev.2007.10.020

Farbmacher, H., Kögel, H., & Spindler, M. (2021). Heterogeneous effects of poverty on attention. Labour Economics, 71(3), 102028. https://doi.org/10.1016/j.labeco.2021.102028

Foster, J., Greer, J., & Thorbecke, E. (2010). The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later. The Journal of Economic Inequality, 8(4), 491–524. https://doi.org/10.1007/s10888-010-9136-1

Hassan, M. U., Khalid, M. W., & Kayani, A. S. (2016). Evaluating the dilemma of inflation, poverty and unemployment. Bulletin of Business and Economics (BBE), 5(2), 67–82.

Haughton, J., & Khandker, S. R. (2009). Handbook on Poverty and Inequality. The World Bank. https://doi.org/10.1596/978-0-8213-7613-3

Islam, R. (2004). The nexus of economic growth, employment and poverty reduction: An empirical analysis (Vol. 14). Recovery and Reconstruction Department, International Labour Office Geneva.

Klasen, S. (2004). Population Growth,(Per Capita) Economic Growth, and Poverty Reduction in Uganda: A brief Summary of Theory and Evidence. Growth, 15, 1–19.

Leal Filho, W., Lovren, V. O., Will, M., Salvia, A. L., & Frankenberger, F. (2021). Poverty: A central barrier to the implementation of the UN Sustainable Development Goals. Environmental Science & Policy, 125, 96–104. https://doi.org/10.1016/j.envsci.2021.08.020

Lucas, K., Mattioli, G., Verlinghieri, E., & Guzman, A. (2016). Transport poverty and its adverse social consequences. Proceedings of the Institution of Civil Engineers - Transport, 169(6), 353–365. https://doi.org/10.1680/jtran.15.00073

McNicoll, G. (1997). Population and poverty: A review and restatement. 105(105), 36–37.

Meo, M. S., Khan, V. J., Ibrahim, T. O., Khan, S., Ali, S., & Noor, K. (2018). Asymmetric impact of inflation and unemployment on poverty in Pakistan: new evidence from asymmetric ARDL cointegration. Asia Pacific Journal of Social Work and Development, 28(4), 295–310. https://doi.org/10.1080/02185385.2018.1523745

Mohammad, U. F., & David, J. (2019). The Relationship between Poverty and Unemployment in Niger State. Signifikan: Jurnal Ilmu Ekonomi, 8(1), 71–78. https://doi.org/10.15408/sjie.v8i1.6725

Mulok, D., Kogid, M., Asid, R., & Lily, J. (2012). Is economic growth sufficient for poverty alleviation? Empirical evidence from Malaysia. Cuadernos de Economía, 35(97), 26–32. https://doi.org/10.1016/S0210-0266(12)70020-1

Nallari, R., & Griffith, B. (2011). Understanding Growth and Poverty. The World Bank. https://doi.org/10.1596/978-0-8213-6953-1

Naylor, R. (1997). Employment for poverty reduction and food security. Food Policy, 22(5), 467–468. https://doi.org/10.1016/S0306-9192(97)88091-8

Ncube, M., Anyanwu, J. C., & Hausken, K. (2014). Inequality, Economic Growth and Poverty in the Middle East and North Africa (MENA). African Development Review, 26(3), 435–453. https://doi.org/10.1111/1467-8268.12103

Pernia, E. M. (2011). (DP 2011-01) Population, Poverty, Politics and the Reproductive Health Bill. UPSE Discussion Papers, 1, 1–9.

Ravallion, M. (1990). On the coverage of public employment schemes for poverty alleviation. Journal of Development Economics, 34(1–2), 57–79. https://doi.org/10.1016/0304-3878(90)90076-N

Ravallion, M. (2020). On the Origins of the Idea of Ending Poverty. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3692164

Raza Cheema, A., & H. Sial, M. (2012). Poverty, Income Inequality, and Growth in Pakistan: A Pooled Regression Analysis. The Lahore Journal Of Economics, 17(2), 137–157. https://doi.org/10.35536/lje.2012.v17.i2.a6

Richard, A. H. J. (2003). Economic Growth, Inequality, and Poverty: Findings from a New Data Set. The World Bank.

Rutherford, D. (2007). Malthus and Three Approaches to Solving the Population Problem. Population (English Edition), 62(2), 213. https://doi.org/10.3917/pope.702.0213

Saboor, A., Hussain, Z., Javed, M. S., & Hussain, M. (2004). Agricultural growth, rural poverty and income inequality in Pakistan: Emerging evidences. Pakistan Journal of Life and Social Sciences, 2(2), 168–173.

Salverda, W., Nolan, B., & Smeeding, T. M. (2022). The Oxford Handbook of Economic Imperialism (Z. Cope & I. Ness (eds.)). Oxford University Press. https://doi.org/10.1093/oxfordhb/9780197527085.001.0001

Škare, M., & Družeta, R. P. (2016). Poverty and economic growth: a review. Technological and Economic Development of Economy, 22(1), 156–175. https://doi.org/10.3846/20294913.2015.1125965

Son, H. H., & Kakwani, N. (2004). Economic growth and poverty reduction: Initial conditions matter.

Todaro, M. P., & Smith, S. C. (2012). Economic development 11th ed. Pearson, Addison Wesley: New York-USA. Accessed On, 30(10), 2015.

Warr, P. (2006). Poverty and Growth in Southeast Asia. Asean Economic Bulletin, 23(3), AE23-3a. https://doi.org/10.1355/AE23-3A

Warr, P. G. (2000). Poverty incidence and economic growth in Southeast Asia. Journal of Asian Economics, 11(4), 431–441. https://doi.org/10.1016/S1049-0078(00)00069-5

Yolanda, Y. (2017). Analysis of Factors Affecting Inflation and its Impact on Human Development Index and Poverty in Indonesia. European Research Studies Journal, 20(4), 38–56. https://doi.org/10.35808/ersj/873

Downloads

Published

2023-02-28

How to Cite

Hutabarat, W., Syahnur, S., & Dawood, T. C. (2023). How Population, Economic, Inequality and Unemployment Contribute Affect Indonesian’s Poverty. International Journal of Advances in Social Sciences and Humanities, 2(1), 8–14. https://doi.org/10.56225/ijassh.v2i1.92
Abstract viewed = 291 times