The Impacts of Social and Economic Determinants on Poverty: An Empirical Study on Southeast Asia

Abstract

The article attempted to examine the influences of social and economic determinants on poverty in seven Southeast Asian countries, namely Lao PDR, Malaysia, Myanmar, the Philippines, Thailand, Timor-Leste, and Vietnam, between 1996 and 2013 using a panel dataset. It was empirically found that the average GDP per capita and Gini index contributed to poverty reduction in Southeast Asian countries. The results also addressed that the population and poverty gap had positive impacts on the rate of the poverty headcount in the region. Policies were recommended to accelerate economic growth, reduce poverty, and achieve sustainable development in Southeast Asia. First, economic growth should be fostered since it assists in reducing poverty in Southeast Asian countries. Second, although the growth of population provides the labor forces to the economy, population growth in Southeast Asia should be carefully controlled since it increases poverty in the region. Third, an increase in the number of rich inhabitants in the society should be encouraged because it can mitigate poverty in the region. Finally, policies in redistributing income as well as in narrowing down income inequality in each society should be considered by the governments because these contribute to poverty reduction in the region.