Abstract
The poverty becomes a serious problem because of the impact it causes. The factors that affect poverty are economic growth, low education, the limitation of natural resources, the limitation of employment opportunities, capital, and family burdens. All of these factors constitute a vicious circle in the problem of poverty. The problems studied are lag-1 investment, lag-2 investment, employment opportunities, and provincial minimum wages and their effects on the poverty rates in Riau Province, Indonesia. The fundamental problem faced by Riau Province today is the high level of poverty amidst government policies that have not met the expectations. The purpose of this study is to analyze government policies in order to reduce the poverty. The research method used was an explanatory study or hypothesis testing study that aims to explain and test hypotheses for the relationship among variables. The relationship described is a causal (cause-effect) relationship. The data were arranged in the form of time series during 1997-2018. The research model was formulated as a linear function based on the Nerlove's Partial Adjustment Model approach and was recursively analyzed using linear regression through the Ordinary Least Square (OLS) method. The findings of this research model are lag-1 investment, lag-2 investment, employment opportunities, and provincial minimum wages have a significant effect on the poverty rate in Riau Province.
Highlights
IntroductionThe economic development is a processto a better direction improvement of the community welfare which is marked by the increasing of people income per capita of the population for long term (Achsani et al, 2010)
This is due to the high poverty rate that limits their ability to fulfill their daily needs (Jalilian & Kirkpatrick, 2002)
It can be seen that the constant value is -11,741. This figure explains, if it is assumed that the total value of the independent variables is equal to zero, the poverty of Riau Province will decrease by 11.741678 units
Summary
The economic development is a processto a better direction improvement of the community welfare which is marked by the increasing of people income per capita of the population for long term (Achsani et al, 2010). The problem faced by many countries concerning people's welfare is the inability of society to meet their daily needs. This is due to the high poverty rate that limits their ability to fulfill their daily needs (Jalilian & Kirkpatrick, 2002). 491) defined poverty as the inability to meet the minimum standard of basic needs covering both food and non-food needs. According to BPS, a poor person is someone who has an average per capita expenditure per month below the poverty line, where the poverty line limit for each province of various size. In Indonesia, the problem of poverty is still large and increasingly complex, which is a challenge for current development
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
