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Revisiting growth and poverty reduction in Indonesia: what do subnational data show?

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  • Arsenio Balisacan
  • Ernesto Pernia
  • Abuzar Asra

Abstract

Indonesia has an impressive record of economic growth and poverty reduction over the past two decades. The growth-poverty nexus appears strong at the aggregate level. However, newly constructed panel data on the country's 285 districts reveal huge differences in poverty change, subnational economic growth and local attributes across the country. The results of econometric analysis show that growth is not the only factor to affect the rate of poverty change; other factors also directly influence the welfare of the poor, as well as having an indirect effect through their impact on growth itself. Among the critical ones are infrastructure, human capital, agricultural price incentives and access to technology. While fostering economic growth is crucial, a more complete poverty reduction strategy should take these relevant factors into account. In the context of ecentralisation, subnational analysis can be an instructive approach to examining local governance in relation to growth and poverty reduction.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Bulletin of Indonesian Economic Studies.

Volume (Year): 39 (2003)
Issue (Month): 3 ()
Pages: 329-351

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Handle: RePEc:taf:bindes:v:39:y:2003:i:3:p:329-351

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Cited by:
  1. Andy Sumner, 2013. "The Evolution Of Education And Health Poverty During Economic Development:The Case Of Indonesia, 1991–2007," Working Papers in Economics and Development Studies (WoPEDS) 201311, Department of Economics, Padjadjaran University, revised May 2013.
  2. Perera, Liyanage Devangi H. & Lee, Grace H.Y., 2013. "Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia?," MPRA Paper 52763, University Library of Munich, Germany.
  3. Lawrence Sáez, 2013. "Methods in governance research: a review of research approaches," Brooks World Poverty Institute Working Paper Series esid-017-13, BWPI, The University of Manchester.
  4. Hal Hill & RBudy Resosudarmo & Yogi Vidyattama, 2008. "Indonesia's Changing Economic Geography," Departmental Working Papers 2008-02, The Australian National University, Arndt-Corden Department of Economics.
  5. Teguh, Dartanto & Nurkholis, Nurkholis, 2011. "Finding out of the Determinants of Poverty Dynamics in Indonesia: Evidence from Panel Data," MPRA Paper 41185, University Library of Munich, Germany.
  6. Espen Villanger & Anette Walstad Enes, 2004. "The role of participation and empowerment in income and poverty dynamics in Indonesia 1993-2000," CMI Working Papers WP 2004: 13, CMI (Chr. Michelsen Institute), Bergen, Norway.
  7. Majumder, Rajarshi, 2012. "Removing poverty and inequality in India: the role of infrastructure," MPRA Paper 40941, University Library of Munich, Germany.
  8. Takahiro Akita & Ni Made Inna Dariwardani, 2013. "Chronic and Transient Poverty in Indonesia: A Spatial Perspective with the 2008-2010 Susenas Panel Data," Working Papers EMS_2013_19, Research Institute, International University of Japan.
  9. Dartanto, Teguh & Otsubo, Shigeru, 2013. "Measurements and Determinants of Multifaceted Poverty:Absolute, Relative, and Subjective Poverty in Indonesia," Working Papers 54, JICA Research Institute.
  10. Nguyen Viet Cuong, 2011. "Estimation of the impact of rural roads on household welfare in Viet Nam," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 18(2), pages 105-135, December.
  11. Essama-Nssah, B., 2004. "A unified framework for pro-poor growth analysis," Policy Research Working Paper Series 3397, The World Bank.
  12. Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
  13. Carlos Aparicio & Miguel A. Jaramillo & Cristina San Román, 2011. "Desarrollo de la infraestructura y reducción de la pobreza: el caso peruano," Working Papers 11-00, Departamento de Economía, Universidad del Pacífico, revised Sep 2011.
  14. Bert Hofman & Susana Cordeira Guerra, 2004. "Ensuring Inter-regional Equity and Poverty Reduction," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0411, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  15. Balisacan, Arsenio M., 1. "Averting Hunger and Food Insecurity in Asia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1).
  16. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
  17. Ravallion, Martin & Lokshin, Michael, 2005. "Lasting local impacts of an economywide crisis," Policy Research Working Paper Series 3503, The World Bank.

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