The Influence of Economic Growth, Education, and Macroeconomic Factors on Regional Poverty Reduction
The poverty rate in the region has consistently remained above 12% over the past five years, indicating a persistent socioeconomic challenge. This study aims to analyze the effect of population, economic growth, regional spending, inflation, and education on poverty levels by utilizing secondary data obtained from official national statistics and financial institutions. The method used is multiple regression analysis with the aid of SPSS 21 software. The findings show that population and inflation have a positive but statistically insignificant influence on poverty, while regional spending also exerts a positive and insignificant effect. In contrast, economic growth and education have a negative and statistically significant effect on poverty, with probability values of 0.003 and 0.042, respectively. Simultaneously, the five variables examined show a significant collective influence on poverty levels during the 2009–2023 period. These results emphasize that economic growth and education play key roles in poverty reduction. The study provides important insights for policymakers to formulate targeted, evidence-based strategies aimed at addressing poverty more effectively and sustainably in the long term.
- Research Article
- 10.59653/jbmed.v2i03.857
- Jun 1, 2024
- Journal of Business Management and Economic Development
Poverty is an issue faced by both developing and developed countries. Like other developing countries, Indonesia continues to strive to overcome the problem of poverty in its territory which is an obstacle to economic development in the country itself. This research was conducted with the aim of determining the effect of Economic Growth, Dependency Ratio, Education Level, and Minimum Wage on Poverty Levels in Kebumen Regency during the period 2005-2022. The data used in this research is secondary data obtained from the Kebumen Regency Central Statistics Agency (BPS). The method used in this research is quantitative using multiple linear regression analysis with the BLUE assumption (Best Linear Unbiased Estimate). So that the results obtained simultaneously are Economic Growth, Dependency Ratio, Education Level, and Minimum Wage which together have an effect on Poverty Level, while partially the Economic Growth variable has a negative and insignificant effect, the Dependency Ratio variable has a negative and insignificant effect, the Education Level variable has a positive effect significant, and the Minimum Wage variable has a significant negative effect on the Poverty Level in Kebumen Regency.
- Research Article
- 10.24036/ujsds/vol3-iss1/329
- Feb 28, 2025
- UNP Journal of Statistics and Data Science
Poverty remains a major challenge in West Sumatra, although various efforts have been made to improve community welfare. In this context, it is important to understand the factors that influence poverty levels. Unemployment, economic growth and inflation are several important variables that can have a significant effect on poverty levels. Unemployment is one of the problems that is often associated with poverty. On the other hand, strong economic growth has the potential to reduce poverty levels by creating new job opportunities and increasing people's incomes. However, non-inclusive economic growth can increase social inequality and uneven income distribution, which in the end can worsen poverty. Apart from that, inflation can also affect poverty levels by reducing people's purchasing power, especially those with low incomes. This research aims to analyze the effect of unemployment, economic growth and inflation on poverty levels. The multiple linear regression analysis method is used to test the relationship between the independent variables (unemployment, economic growth and inflation) and the dependent variable (poverty). Based on the research findings, it can be concluded that unemployment, economic growth and inflation contribute to poverty in West Sumatra at 49,35% and the remainder 50,65% is explained by other factors outside the model.The analysis indicates a significant linear influence on unemployment and economic growth on poverty in West Sumatra and there is no significant linear future of inflation on poverty in West Sumatra. The best regression model obtained is Y = 0,8938 + 0,7947 X1 + 0,2452 X2 + ɛ.
- Research Article
- 10.31949/maro.v4i1.973
- Apr 30, 2021
- Maro: Jurnal Ekonomi Syariah dan Bisnis
Poverty is a serious and very important problem in every country, including Indonesia. Thus poverty alleviation is a policy that must always be implemented by implementing concrete steps in its implementation. Writing this study aims to determine the effect of ZIS, economic growth, unemployment and inflation on the poverty rate in Indonesia for the period 2010-2019. This study uses a quantitative approach with multiple linear regression analysis methods and hypothesis testing. In the results of this study, the T test shows that the ZIS does not have a partial effect on the poverty level but has a negative direction, while economic growth and inflation do not have a significant effect on the poverty level. And unemployment has a significant positive effect on the poverty rate. The F test shows that the independent variables, namely ZIS, economic growth, unemployment and inflation simultaneously influence the dependent variable, namely the level of poverty in Indonesia.
- Research Article
2
- 10.24843/eeb.2022.v11.i01.p01
- Jan 18, 2022
- E-Jurnal Ekonomi dan Bisnis Universitas Udayana
This study aims 1) To analyze the effect of investment, government spending and labor on economic growth in Bali Province, 2) To analyze the effect of investment, government spending, labor and economic growth on poverty levels in Bali Province, 3) To analyze the indirect effect of investment, government spending and labor on poverty levels through economic growth in Bali Province. The number of observations in this study was 63 observation points in the period 2013-2019 in 9 districts/cities of Bali Province using panel data. The data analysis technique used in this research is path analysis. The results of this study indicate that 1) Investment has a positive and insignificant effect on economic growth, while government spending and labor have a positive and significant effect on economic growth; 2) Government investment and spending have a negative and insignificant effect on the poverty level, while labor and economic growth have a negative and significant effect on the poverty level; 3) Investment does not indirectly affect the poverty rate through economic growth, while government spending and labor have an indirect effect on the poverty rate through economic growth.
- Research Article
6
- 10.18415/ijmmu.v6i2.704
- May 4, 2019
- International Journal of Multicultural and Multireligious Understanding
Poverty is one of the most common problems in each country. This poverty phenomenon occurs in all countries that are not divided into developed countries in the world. This poverty occurs due to several factors, such as the low level of economic growth, health, and education of a country. This study aims to analyze Indonesia's poverty level seen through economic growth, health, and education from 2004-2017. This research is a quantitative study using secondary data obtained from Badan Pusat Statistik (BPS) Indonesia and Statistik Ekonomi dan Keuangan Indonesia (SEKI). In analyzing the data, use the application of E-Views 10 with the Ordinary Least Squares (OLS) method. The results showed that: (1). Economic growth has a positive and not significant influence on Indonesia's poverty level, (2). Health has a negative and significant influence on Indonesia's poverty level, (3). Education has a negative and insignificant influence on Indonesia's poverty level, (4). Economic growth, health, and education affected the Indonesian poverty rate of 88.5% which was indicated by the R-squared value of 0.885.
- Research Article
- 10.29264/jiem.v1i4.737
- Dec 23, 2016
The effect of economic growth and labor productivity and education levels of the level of poverty in the province of East Kalimantan 2006-2015. The purpose of this study was to determine the effect of economic growth, labor productivity and education levels of the level of poverty. The theory used in this research is a theoretical concept kemisikanan which is influenced by the number of population, labor force education levels. This study uses data obtained from the Central Statistics Agency (BPS). The analytical method used in this research is multiple linear regression analysis. From the analysis of the data that I do can be concluded that (1) Growth significant effect with directions negatively related to the level of poverty in the province of East Kalimantan (2) Productivity Labor significant effect with directions negatively related to the level of poverty in the province of East Kalimantan (3) Education level not significant positive correlation with the direction of the level of poverty in the province of East Kalimantan year. Keywords: E conomic Groeth, Labor Productivity, Education
- Research Article
2
- 10.54783/ijsoc.v4i1.427
- Feb 15, 2022
- International Journal of Science and Society
East Kutai Regency has the second largest area in East Kutai Regency. In various ways, the local government has tried to increase economic growth and poverty alleviation, but these problems have not achieved the desired results. This study aims to determine the direct and indirect effects of private investment, labor force, infrastructure spending, human development index on economic growth and poverty levels in East Kutai Regency. To analyze the data used path analysis. The data used is secondary data in the form of time series data for 2007-2021. The results of this study indicate that the direct influence of Private Investment, Labor Force, Human Development Index on growth has a positive direction but is not significant. In contrast, infrastructure spending on economic growth has a positive approach. Then the direct effect of private investment, the human development index on poverty, is positive and not significant if it has the direction. The direct effect of the Labor Force, Infrastructure Expenditure on the Poverty Level is negative and significant. The poverty rate through economic growth has a positive and significant direction. The indirect effect of the Labor Force on the Poverty Level through economic growth has a negative and insignificant direction. The indirect effect of infrastructure spending on poverty levels through economic growth has a negative and significant direction.
- Research Article
- 10.52403/ijrr.20210532
- May 21, 2021
- International Journal of Research and Review
Poverty is one of the problems that become the center of attention in any country including Indonesia, especially North Sumatra Province. In poverty alleviation, the government is required to supervise supporting policies that can alleviate the poverty level. Factors that can alleviate poverty are economic growth, government expenditure, and investments made. The purpose of this study is to find out and analyze the influence of economic growth, government expenditure, and investment on poverty levels in North Sumatra Province. This type of research is ex post facto and associative. The type of data used is quantitative in the form of secondary data. The population of this study is variable data in districts/cities in North Sumatra Province, namely as many as 33 districts/cities during 2014-2018 and sample withdrawal used is cluster sampling so that the sample as many as 165 observations. The data analysis method used is to use multiple linear regressions using Eviews10.0 software. The results showed economic growth, government expenditure and simultaneous investment negatively and significantly affected the poverty rate in North Sumatra Province with a coefficient of determination (R2) of 0.9938 or 99.38%. Partial economic growth has a negative and significant effect on the poverty rate in North Sumatra Province while government expenditure and investment have an insignificant negative effect on poverty in North Sumatra Province. Keywords: Economic Growth, Government Expenditure, Investment, Poverty Level.
- Research Article
- 10.20527/jiep.v6i2.11047
- Dec 1, 2023
- JIEP: Jurnal Ilmu Ekonomi dan Pembangunan
This research discusses the influence of Population Numbers, Economic Growth, and Income Inequality on Poverty rates in South Kalimantan Province in 2003-2020. This study aims to determine the impact of population, economic Growth, and income inequality on poverty levels in South Kalimantan from 2003-2020. This study used multiple linear regression analysis methods with specific time-lined data, and the data used operated with the E-Views 10 application. From the conclusion of the research that has been conducted, population effects negatively and significantly affect the poverty rate in South Kalimantan Province from 2003 to 2020. Economic Growth gives a negative and significant direction to the poverty rate in the Province of South Kalimantan in 20032020. At the same time, the Income Inequality variable had a positive but insignificant effect on the poverty level in the Province of South Kalimantan from 2003 to 2020.
- Research Article
16
- 10.1111/j.1467-8268.2008.00174.x
- Mar 12, 2008
- African Development Review
In 2004 the United Nations University World Institute for Development Economics Research (UNU-WIDER) embarked on a large-scale research project on the ‘Impact of Globalization on the World’s Poor’ co-directed by Machiko Nissanke and Erik Thorbecke. The first conference was essentially conceptual in nature, meant to understand better the various mechanisms and channels through which globalization affects the poor either directly or indirectly. The other three conferences focused on each of the major regions of the developing world: Asia, Africa and Latin America. Theobjectivesofthisintroductionarethreefold:first,toreviewbrieflyhow the forces of globalization influence poverty in general; second, to describe and discuss the main transmission channels and mechanisms; and third to analyze the impact of globalization on Africa and present an overview of the six Africa case studies included in this issue. 1. The Impact of Globalization on the World’s Poor Globalization provides a strong potential for a major reduction in poverty in the developing world because it creates an environment conducive to fastereconomicgrowthandtransmissionofknowledge. 1 However,structural factors and policies within the world economy and national economies have impeded the full transmission of the benefits of the various channels of globalization for poverty reduction. In particular sub-Saharan Africa (SSA) hasbeenrelativelylessaffectedbytheforcesofglobalizationthanotherparts of the world. World income distribution continues to be very unequal and many poor countries particularly in Africa are stagnating. Moreover, there is much empirical evidence that openness contributes to more within-country
- Research Article
- 10.33369/convergencejep.v6i1.32904
- Jun 2, 2025
- Convergence: The Journal of Economic Development
One measure of assessing the success of development in an area is the level of poverty. This research was conducted to determine the effect of Economic Growth (X1), Open Unemployment Rate (X2), Inflation (X3), Human Development Index (X4), and Domestic Investment (X5) on the poverty rate (Y) in 34 Provinces. in Indonesia in 2017-2022. Data sourced from the official website of the Indonesian Central Statistics Agency, quantitative research methods using panel data regression with the selected model Fix Effect Model (FEM) processed with Eviews9 software. The research results show that simultaneously economic growth, open unemployment rate, inflation, human development index, and domestic investment influence poverty levels in 34 provinces in Indonesia. Meanwhile, partially, Economic Growth, Open Unemployment Rate, Inflation and Human Development Index have a significant effect on reducing poverty levels, while Domestic Investment has an insignificant effect on poverty reduction levels.. Key words: Poverty, Economic Growth, Open Unemployment Rate, Inflation, Human Development Index, Foreign Investment.
- Research Article
- 10.18502/kss.v9i23.16748
- Jul 30, 2024
- KnE Social Sciences
The purpose of this study was to determine whether the average length of schooling, life expectancy, and labor force participation rates affect economic growth with productivity levels as intervening variables in Riau Province in 2012-2021. The data used in this study was secondary data, which is a combination of time series and cross-section. The analytical method used in this study was multiple linear regression analysis using theory and data related to research. The results showed that the average length of schooling for boys had a negative and insignificant effect on economic growth in Riau Province. Meanwhile, the average length of schooling for women has a negative and insignificant effect on economic growth in Riau Province. From the results of the partial test, it can be concluded that the average length of schooling does not show gender inequality. Directly, the life expectancy for men has a negative and insignificant effect on economic growth in Riau Province. Meanwhile, life expectancy for women has a positive and insignificant effect on economic growth in Riau Province. From the results of the partial test, it can be concluded that there is gender inequality in life expectancy. Directly, the labor force participation rate for men has a negative and insignificant effect on economic growth in Riau Province. Meanwhile, the labor force participation rate for women has a negative and insignificant effect on economic growth in Riau Province. From the results of the partial test, it can be concluded that there is no gender inequality in the labor force participation rate. Indirectly, through the level of productivity, the average length of schooling for men has a positive and insignificant effect on economic growth in Riau Province. Meanwhile, the average length of schooling for women has a positive and insignificant effect on economic growth in Riau Province. From the results of the Sobel test, it was concluded that the average length of schooling does not have a relation to gender inequality. Indirectly, through the level of productivity, the life expectancy rate for men has a positive and insignificant effect on economic growth in Riau Province. Meanwhile, life expectancy for women has a negative and insignificant effect on economic growth in Riau Province. From the results of the Sobel test, it was concluded that there is a gender gap in life expectancy. Indirectly, through the level of productivity, the labor force participation rate for men has a negative and insignificant effect on economic growth in Riau Province. Meanwhile, the labor force participation rate for women has a positive and insignificant effect on economic growth in Riau Province. From the results of the Sobel test, it can be concluded that there is a gender imbalance in the labor force participation rate. The results of this study were influenced by gender inequality in terms of education, health, and employment which are categorized as experiencing low inequality so that they do not have much impact on economic growth in Riau Province. From the education side, as seen from the average length of schooling, it has no effect on economic growth in Riau Province, as well as from a health perspective, the high life expectancy rate does not have a serious impact on economic growth in Riau Province. Keywords: Gender Inequality; Productivity; Economic Growth
- Research Article
- 10.31703/ger.2017(ii-i).14
- Dec 30, 2017
- Global Economics Review
This article attempts to examine the relationship between economic growth and poverty reduction through an analysis of the effects of remarkable growth performance of three East Asian countries viz China, Korea and Taiwan on poverty reduction. Through an extensive review of literature, it was found that the level of poverty as well as income inequality in China has remained high for most of the time despite exceptional growth rates over the past few decades. Whereas, both South Korea and Taiwan have witnessed significant reduction in the level of poverty as well as income inequality. The findings suggest that a robust relationship between growth and poverty reduction does not prevail across all the ‘miraculous economies’. Furthermore, the findings also shed light on the nexus between economic growth, poverty reduction and income inequality. From the Chinese case, it is evident that economic growth has not translated into poverty reduction. Skewed economic growth patterns seem to have deteriorated income inequality among different regions in China. On the contrary, economic growth seems to be closely associated with both poverty reduction and income inequality both in the Republic of Korea and Taiwan.
- Research Article
- 10.48028/iiprds/ijasepsm.v13.i1.11
- Feb 1, 2025
- International Journal of Advanced Studies of Economics and Public Sector Management
Considering the dominance of remittances as the main source of foreign capital, along with enhanced economic growth in West Africa, it is expected that there will be reduction in poverty which is in consonance with the United Nations first objective of sustainable development goal; however, poverty remain prevalent in West Africa. The aim of this study is to assess the effect of migrants' remittances and economic growth on poverty reduction in some selected West African countries: Nigeria, Ghana and Senegal. Data for this study were obtained from secondary sources. The study covered annual data spanning the period 1990 to 2022, employing a panel autoregressive distributed lag (PARDL) co- integration test. The co-integration relationship shows poverty gap index, remittances, economic growth, inflation rate, unemployment and foreign direct investment were co- integrated. The empirical findings revealed that migrants' remittances and economic growth have significant negative effect on poverty in the long-run, consistent with a priori expectation while inflation revealed an insignificant positive effect on poverty in West Africa in the long- run. Also, unemployment and foreign direct investment were revealed to have negative effect on poverty in the long-run. However, foreign direct investment was not significant. Whereas the short-run result revealed that remittances and economic growth have significant positive effect on poverty. The PMG's speed of adjustment parameter (ECT) is rightly signed and statistically significant at 10% level, reinforcing co-integrating relationship. That is 31% disequilibrium in the short-run is corrected annually in the long-run. Revealed unidirectional causality runs from remittances, GDP per capita, and inflation to poverty, while there appears to be no causal relationship either from unemployment or foreign direct investment to poverty and vice versa. The test of hypotheses results revealed that all the alternative hypotheses were accepted and the null hypotheses rejected. Therefore, the study concluded that remittances and economic growth have decelerating-effects on the level of poverty in West Africa in the long-run. The following recommendations, among others, were made: (a) Governments need to substantially strengthen and synergize remittances and economic growth as poverty alleviating factors in West Africa (b) Remittance recipients need sensitization on the need to channel such funds into productive ventures and policy mandating them to do so be enacted and implemented (c) Economic growth in West African countries should be inclusive driven.
- Research Article
- 10.53819/81018102t4232
- Nov 13, 2023
- Journal of Finance and Accounting
The real estate sector has been growing over the years because of major infrastructural developments and high population growth in Kenya. However, the sector has been facing some challenges that have been affecting its growth. This research aimed to assess how macroeconomic factors influence Kenya’s real estate financial success. The research primarily focused on determining inflation, interest rates, exchange rates’ impact and economic growth on Kenya’s real estate sector. The study was underpinned by demand-pull inflation theory, the classical/neo classical theory for interest rates, the classical growth theory and purchasing power parity. The study employed causal research design and targeted three main Kenyan real estate developers in Kenya; Cytonn Investments, Hass Consult, and Knight Frank. In light of the small target population, a census approach was used and the research employed secondary data. As a result, secondary data from the property developers’ yearly market reports from 2016 to 2022 was gathered. Pearson’s correlation and panel data analysis methods were also employed. The findings revealed that the relationship between inflation, interest rates, exchange rates and economic growth revealed R-squared value of 0.8057, implying that the macroeconomic variables explains around 81% of the variation in financial growth within the real estate sector. The study also found that inflation had positive and significant effect on financial growth (β =0.0045187, p=.048<.05), interest rate had positive and significant effect on financial growth (β =0.044177, p=.011<.05), exchange rate had negative but insignificant effect on financial growth (β =-0.0178337, p=0.227>.05), economic growth had positive and significant effect on financial growth (β =0.0980943, p=0.007<.05). The study recommends that financial institutions, policy makers, and developers should implement measures to mitigate the adverse effects of high inflation on the real estate sector. Keywords: Inflation, Interest rates, Exchange rates, Economic growth, Macroeconomics factor.
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