The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia
AbstractIn this paper, we investigate the relationship between economic growth and poverty reduction by differentiating growth and poverty into their sectoral composition and urban-rural location using data from Indonesia. We find that rural services growth reduces poverty in all sectors and locations. However, urban services growth has the largest effect on poverty in most sectors. Finally, we also find that rural agriculture growth strongly reduces poverty in rural areas, the largest contributor to poverty in Indonesia. This implies that while agriculture growth in rural areas still plays a major role in reducing poverty, policies that enable strong growth in the services sector in both urban and rural areas would expedite poverty reduction.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 89 (2009)
Issue (Month): 1 (May)
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Web page: http://www.elsevier.com/locate/devec
Economic growth Poverty Urban Rural Indonesia;
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