Abstract
This study aims at determining inclusive growth and exploring the relationship between inclusive growth, educational attainment and morbidity rate in Papua province. This is due to the fact that Papua Province with special autonomy status attempts to catch up with economic growth from other provinces and increases income equity by focusing on education and health. This study exploits Social Mobility Curve (SMC) and Panel VAR to comprehend inclusive growth and determine the reciprocal relationship between Social Mobility Index, average years of schooling and morbidity rate in Papua Province in 2011-2016. Based on the results, there was economic growth in Papua Province which was still accompanied by an increase in income disparity, thus, it could be concluded that economic growth in Papua was still not inclusive. Regarding the results of the Panel VAR, there was no reciprocal relationship between the three variables with education and health having a positive and significant effect on inclusive growth. The positive influence of education and health is probably due to individual productivity and globalization factors. To increase inclusive growth, Papua Province is advised to improve student education so that later students most likely be more productive and get better jobs and salaries.
Highlights
Economic growth without equitable distribution of income will not be sufficient to produce sustainable welfare of society (OECD, 2014) because inequality increases (Klasen, 2010) and encourages criminal acts from community groups who feel their rights are not fulfilled (ADB, 2011)
The first stage in this study focuses on measuring the inclusive growth of the Papua Province using the Social Mobility Curve (SMC) developed by Anand et al (2013)
Related to the analysis of causality relationships, this study shows there is no reciprocal relationship between the three variables with education attainment and health complaints significantly influencing inclusive growth, and not vice versa
Summary
Economic growth without equitable distribution of income will not be sufficient to produce sustainable welfare of society (OECD, 2014) because inequality increases (Klasen, 2010) and encourages criminal acts from community groups who feel their rights are not fulfilled (ADB, 2011). Several studies have tried to overcome this issue by raising the concept of inclusive growth, growth which creates new economic opportunities, and guarantees equal access to opportunities created for all segments of society (Ali and Son, 2007). Indonesia which experiences economic growth with increasing inequality in various regions (Fauzia and Suseno, 2018), is obliged to pursue inclusive economic growth. To overcome these trade-offs, the concept of inclusive growth in Indonesia needs to be explored further. There have been several studies related to inclusive growth in Indonesia nationally (eg Dartanto, 2014; Vujanovic, 2015) and provincialbased ones such as South Sulawesi Province (Azwar, 2016) and provinces on Java (Juliansyah, 2017); no one has conducted research on inclusive economic growth in Papua Province
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.
