Abstract

Abstract: Arisan or Rotating Savings and Credit Associations (ROSCAs) constitute one of the most commonly found informal financial institutions in the developing world. This study aims to analyze the effect of Rotating Savings And Credit Associations (ROSCAs) on poverty in Indonesia using panel data sourced from the fourth and fifth wave of the Family Life Survey (IFLS). This study used a conditional logit or fixed effect logit to see the effect of Rotating Savings and Credit Associations (ROSCAs) participation and control variables, which include individual, household, and community characteristics on poverty variables that are binary or categorized. The results showed that Rotating Savings and Credit Associations (ROSCAs) participation can reduce poverty. Meanwhile, this study shows that women who participate in Rotating Savings and Credit Associations (ROSCAs) can reduce poverty significantly. Keywords: poverty, ROSCAs, IFLS, conditional logit Ekonomi Arisan dan Kemiskinan di Indonesia Abstrak: Arisan atau Rotating Savings and Credit Associations (ROSCAs) merupakan salah satu lembaga keuangan informal paling umum yang terdapat di negara berkembang. Penelitian ini bertujuan untuk melihat pengaruh arisan (ROSCAs) terhadap kemiskinan di Indonesia dengan menggunakan data panel yang bersumber dari Indonesia Family Life Survey (IFLS) gelombang keempat dan kelima. Metodologi yang digunakan dalam penelitian ini adalah Conditional Logit atau Fixed Effect Logit untuk melihat pengaruh variabel partisipasi arisan dan variabel kontrol yang meliputi karakteristik individu, rumah tangga, dan komunitas terhadap variabel kemiskinan yang bersifat biner atau kategori. Hasil penelitian ini menunjukkan bahwa partisipasi arisan dapat mengurangi kemiskinan. Selain itu, penelitian ini menunjukkan bahwa perempuan yang berpartisipasi dalam arisan dapat mengurangi kemiskinan secara signifikan. Kata kunci: Kemiskinan, arisan, IFLS, conditional logit

Highlights

  • Poverty is a global problem which both developing and developed countries face; poverty transcends geographical limitations

  • Poverty is the first goal of the Sustainable Development Goals (SDGs) program designed by the United Nations (UN)

  • Based on the findings above, the objective of this study aims to determine the effect of rotating savings and credit association (ROSCAs) participation on poverty alleviation with cases in Indonesia that never been structured

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Summary

Introduction

Poverty is a global problem which both developing and developed countries face; poverty transcends geographical limitations. Poverty is a condition in which a person cannot or have difficulty in meeting their daily basic needs and their family's basic needs. Poverty can be interpreted as a person's per capita income that is below the minimum income level or the poverty line set by the government. Poverty is the first goal of the Sustainable Development Goals (SDGs) program designed by the United Nations (UN). In the SDGs program, the UN states that 10% of the total world population, or 736 million people, are in extreme poverty lines, and around 1.3 billion people are in multidimensional poverty (UNDP, 2006; World Bank, 2018). Multidimensional poverty measures poverty in terms of per capita expenditure 100

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