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Poverty in Indonesia 1984-2002: the impact of growth and changes in inequality

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  • Riyana Miranti

Abstract

This paper examines the growth elasticity of poverty across three development episodes in Indonesia between 1984 and 2002, after controlling for inequality. It relies on estimation of panel data from the National Socio-Economic Survey conducted by the central statistics agency. Contrary to expectations, the growth elasticity of poverty was virtually indistinguishable across the three development episodes - a period of far-reaching policy liberalisation (1984-90); a second period of slower liberalisation (1990-96); and the period of recovery from the Asian financial crisis (1999-2002). Growth was pro-poor in all three periods, while the impact of growth on poverty was either augmented or offset by changes in inequality, depending on the period. Only during the first liberalisation period did a reduction in inequality serve to augment the impact of growth on poverty.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00074911003642252
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Bibliographic Info

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

Volume (Year): 46 (2010)
Issue (Month): 1 ()
Pages: 79-97

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Handle: RePEc:taf:bindes:v:46:y:2010:i:1:p:79-97

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Cited by:
  1. Kis-Katos, Krisztina & Sparrow, Robert, 2013. "Poverty, Labour Markets and Trade Liberalization in Indonesia," IZA Discussion Papers 7645, Institute for the Study of Labor (IZA).
  2. 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.

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