IDEAS home Printed from https://ideas.repec.org/a/rss/jnljms/v7i1p3.html
   My bibliography  Save this article

The Nexus of Economic Factors and Poverty in the Region’s Economy

Author

Listed:
  • Imam Mukhlis
  • Timbul Hamonangan Simanjuntak

Abstract

This study aims to give analysis for the effect of the economic growth rate, the minimum wage and unemployment on poverty in 38 districts / cities in East Java province during 2010-2014. The method of data analysis used in this study is the selection of panel data model in form of a fixed effect model. The results provide the conclusion that the rate of economic growth has no significant effect on poverty levels in various districts / cities in East Java. Minimum wage variable has a regression coefficient of - 0.079224 and significant. It means that a higher minimum wage would reduce poverty in the area. Meanwhile, the unemployment variable has a regression coefficient of 0.275130. It means that higher unemployment will further increase the level of poverty in the area. Based on the above results, the policy recommendations that can be given are: the creation of economic growth can be done through giving attention on the economic potential of local and regional resources, establishing communication with the various parties involved in determining the amount of the minimum wage so that the amount of the minimum wage can increase the productivity of its work, the expansion of employment opportunities in various sectors of economic and infrastructure development in the poverty centers in the districts.

Suggested Citation

  • Imam Mukhlis & Timbul Hamonangan Simanjuntak, 2016. "The Nexus of Economic Factors and Poverty in the Region’s Economy," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 7(1), pages 14-20.
    • Handle: RePEc:rss:jnljms:v7i1p3
    as

    Download full text from publisher

    File URL: http://rassweb.org/admin/pages/ResearchPapers/Paper%203_1497444219.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pierre‐Richard Agénor, 2005. "The Macroeconomics Of Poverty Reduction," Manchester School, University of Manchester, vol. 73(4), pages 369-434, July.
    2. Ms. Anne Epaulard, 2003. "Macroeconomic Performance and Poverty Reduction," IMF Working Papers 2003/072, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Imam Mukhlis & Isnawati Hidayah & Sariyani, 2018. "Economic agglomeration, economic growth and income inequality in regional economies," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 205-212, Oktober.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Awaworyi Churchill, Sefa & Smyth, Russell, 2017. "Ethnic Diversity and Poverty," World Development, Elsevier, vol. 95(C), pages 285-302.
    2. Augustin Kwasi Fosu, 2009. "Inequality and the Impact of Growth on Poverty: Comparative Evidence for Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 726-745.
    3. Sushanta K. Mallick, 2014. "Disentangling the Poverty Effects of Sectoral Output, Prices, and Policies in India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 773-801, December.
    4. Augustin Kwasi Fosu, 2010. "Inequality, Income, and Poverty: Comparative Global Evidence," Social Science Quarterly, Southwestern Social Science Association, vol. 91(5), pages 1432-1446, December.
    5. Kalwij, A.S. & Verschoor, A., 2004. "How Good is Growth for the Poor? The Role of Initial Income Distribution in Regional Diversity in Poverty Trends," Other publications TiSEM 199ed5a4-ad69-4cf9-81d7-b, Tilburg University, School of Economics and Management.
    6. Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.
    7. Fosu, Augustin Kwasi, 2017. "Growth, inequality, and poverty reduction in developing countries: Recent global evidence," Research in Economics, Elsevier, vol. 71(2), pages 306-336.
    8. Augustin Kwasi Fosu, 2010. "Inequality, Income, and Poverty: Comparative Global Evidence," Social Science Quarterly, Southwestern Social Science Association, vol. 91(s1), pages 1432-1446.
    9. Thorat, Sukhadeo, 2011. "Growth, Inequality and Poverty Linkages during 1983-2005: Implications for Socially Inclusive Growth," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 66(1), pages 1-32.
    10. Kalwij, Adriaan & Verschoor, Arjan, 2007. "Not by growth alone: The role of the distribution of income in regional diversity in poverty reduction," European Economic Review, Elsevier, vol. 51(4), pages 805-829, May.
    11. Araujo, Jair Andrade & Marinho, Emerson & Campêlo, Guaracyane Lima, 2017. "Economic growth and income concentration and their effects on poverty in Brazil," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    12. Augustin Kwasi Fosu, 2023. "Progress on Poverty in Africa: The Importance of Growth and Inequality," Journal of African Economies, Centre for the Study of African Economies, vol. 32(Supplemen), pages 164-182.
    13. Ricardo N. Bebczuk, 2008. "Dolarización y Pobreza en Ecuador," CEDLAS, Working Papers 0066, CEDLAS, Universidad Nacional de La Plata.
    14. Lars Ivar Oppedal Berge & Armando José Garcia Pires, 2020. "Gender, formality, and entrepreneurial success," Small Business Economics, Springer, vol. 55(4), pages 881-900, December.
    15. -, 2015. "La economía del cambio climático en América Latina y el Caribe: paradojas y desafíos del desarrollo sostenible," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37310 edited by Cepal, September.
    16. Crowe, Christopher, 2004. "Inflation, inequality and social conflict," LSE Research Online Documents on Economics 19932, London School of Economics and Political Science, LSE Library.
    17. Adriaan Kalwij & Arjan Verschoor, 2005. "A Decomposition of Poverty Trends Across Regions: the Role of Variation in the Income and Inequality Elasticities of Poverty," WIDER Working Paper Series RP2005-36, World Institute for Development Economic Research (UNU-WIDER).
    18. Mcknight, Abigail, 2019. "Understanding the relationship between poverty, inequality and growth: a review of existing evidence," LSE Research Online Documents on Economics 103458, London School of Economics and Political Science, LSE Library.
    19. Agenor, Pierre-Richard & Bayraktar, Nihal & Pinto Moreira, Emmanuel, 2006. "Linking public investment programs and SPAHD macro models : methodology and application to aid requirements," Policy Research Working Paper Series 3944, The World Bank.
    20. Gärtner, Dennis L. & Gärtner, Manfred, 2011. "Wage traps as a cause of illiteracy, child labor, and extreme poverty," Research in Economics, Elsevier, vol. 65(3), pages 232-242, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rss:jnljms:v7i1p3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Danish Khalil (email available below). General contact details of provider: http://www.rassweb.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.