Effect Of Exports, Government Expenditure And Inflation On Indonesia Poverty (2000-2019)

Anas Fadhillah,Arintoko Arintoko,Kamio Kamio

doi:10.30595/medek.v0i0.11780

Abstract

The purpose of this study to analyze the effect of exports, government expenditure, and inflation on poverty in Indonesia in 2000-2019, and the independent variables which are the most dominant against poverty in Indonesia. The data used are secondary data taken from Bank Indonesia and Badan Pusat Statistik (BPS). This study uses a regression method with the OLS (Ordinary Least Square) model. or the ordinary least squares model. The results of this study note that oil and gas and non-oil exports have a negative and significant effect on poverty, government expenditure has a significant and negative effect on poverty, and inflation has a positive but not significant effect. To reduce poverty in Indonesia, it is necessary to export commodities that have a large added value, government expenditure which leads to a reduction in the number of poor people, and to control prices of goods and services that are stable / accessible to the poor.

Highlights

Poverty is one of the economic problems faced by all countries in the world and has become a phenomenal problem which has become a reference point for the success of the country from time to time, every country strives to reduce poverty, especially in developing countries
Indonesia is a developing country that pays attention to the problem of poverty and makes every effort to reduce the number of poor people
The root of the problem of poverty is related to national output which is known to be in deficit in international trade activities, import value is greater than export value, low export value results in low national output, low national output cannot create new jobs while the population is increasing, the number of people who do not have a job there is unemployment, people do not have income to make ends meet and poverty occurs

Summary

INTRODUCTION

Poverty is one of the economic problems faced by all countries in the world and has become a phenomenal problem which has become a reference point for the success of the country from time to time, every country strives to reduce poverty, especially in developing countries. Indonesia is a developing country that pays attention to the problem of poverty and makes every effort to reduce the number of poor people. Poverty is caused due to a condition in which the inability to meet basic needs such as food, clothing, shelter, health and education This is due in part to the increase in the price of goods and services that the public cannot afford continuously or what is often called inflation (Samuelson dan Nordhaus, 2004). The government has carried out several development policies maximally to reduce the number of poor people, improving education has been found to be a key factor in poverty alleviation (Gokan, 2011). Several countries have implemented strategies to increase the rate of economic growth to reduce the number of poor people. Inflation has a positive side, inflation is needed to increase the enthusiasm of entrepreneurs to benefit from their business activities, a good price increase is a stable increase in prices

METHOD

RESULTS AND DISCUSSION

CONCLUSION