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Dependence of Poverty Dependence on Indonesian Economic Fundamentals

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  • Siahaan, Andysah Putera Utama

    (Universitas Pembangunan Panca Budi)

  • , Rusiadi
  • Nasution, Muhammad Dharma Tuah Putra
  • Aryza, Solly

Abstract

This paper analyzes the degree of poverty dependence with economic fundamentals in Indonesia over the long term. Economic fundamentals are a vital measure of price stability, purchasing power, and poverty control. Long-term analysis using Structural Factor-Augmented Vector Autoregression (SFAVAR). The results of the study found that the degree of poverty dependence on economic fundamentals is very high, both short, medium and long-term. Indonesia is highly dependent on strong fundamentals. The most vulnerable fundamentals of poverty are short-term interest, medium-term rates, and long-term exports.

Suggested Citation

  • Siahaan, Andysah Putera Utama & , Rusiadi & Nasution, Muhammad Dharma Tuah Putra & Aryza, Solly, 2018. "Dependence of Poverty Dependence on Indonesian Economic Fundamentals," INA-Rxiv rntey, Center for Open Science.
    • Handle: RePEc:osf:inarxi:rntey
    DOI: 10.31219/osf.io/rntey
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