IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2020-05-33.html

The Role of Agricultural Sector in Explaining Poverty in Indonesia: A Study Case of West Kalimantan

Author

Listed:
  • M. Ali Nasrun

    (Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia)

  • Fariastuti

    (Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia)

  • Sukma Indra

    (Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia)

Abstract

Poverty has become a significant economic problem and set as a priority of the United Nations (UN) in its Sustainable Development Goals (SDGs) program. Likewise, it remains a problem in the province of West Kalimantan, Indonesia, with its underprivileged population amounted to 369,730 people or 7.3% of the population in Indonesia. Meanwhile, Indonesia s agricultural sector is expected to fulfill some objectives, namely providing food and helping people get out of poverty. Therefore, this research aims to test the influence of output and labor absorption in the agricultural sector on the number of poor populations in West Kalimantan, Indonesia. It employed multiple regression to analyze panel data from 2008 to 2017 from the Indonesian and West Kalimantan s National Statistical Bureau (BPS, 2019). The research findings indicated that the output of the agricultural sector positively and significantly influences the number of people living in poverty. In contrast, labor absorption in the agriculture sector positively, yet insignificant, influences the number of people living in poverty in West Kalimantan. It might be caused by low productivity in the agricultural sector.

Suggested Citation

  • M. Ali Nasrun & Fariastuti & Sukma Indra, 2020. "The Role of Agricultural Sector in Explaining Poverty in Indonesia: A Study Case of West Kalimantan," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 10(5), pages 297-303.
    • Handle: RePEc:eco:journ1:2020-05-33
    as

    Download full text from publisher

    File URL: https://econjournals.com/index.php/ijefi/article/download/10334/pdf
    Download Restriction: no
    File URL: https://econjournals.com/index.php/ijefi/article/view/10334/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Datt,Gaurav & Ravallion,Martin & Murgai,Rinku, 2016. "Growth, urbanization, and poverty reduction in India," Policy Research Working Paper Series 7568, The World Bank.
    2. Mellor, John W. & Dorosh, Paul A., 2010. "Agriculture and the economic transformation of Ethiopia," ESSP working papers 10, International Food Policy Research Institute (IFPRI).
    3. Dalila Cervantes-Godoy & Joe Dewbre, 2010. "Economic Importance of Agriculture for Poverty Reduction," OECD Food, Agriculture and Fisheries Papers 23, OECD Publishing.
    4. Iniguez-Montiel, Alberto Javier, 2014. "Growth with Equity for the Development of Mexico: Poverty, Inequality, and Economic Growth (1992–2008)," World Development, Elsevier, vol. 59(C), pages 313-326.
    5. Abro, Zewdu Ayalew & Alemu, Bamlaku Alamirew & Hanjra, Munir A., 2014. "Policies for Agricultural Productivity Growth and Poverty Reduction in Rural Ethiopia," World Development, Elsevier, vol. 59(C), pages 461-474.
    6. Shashidhara Kolavalli & Elizabeth Robinson & Guyslain Ngeleza & Felix Asante, 2012. "Economic Transformation in Ghana: Where Will the Path Lead?," Journal of African Development, African Finance and Economic Association (AFEA), vol. 14(2), pages 41-78.
    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. repec:uii:journl:v:7:y:2015:i:2:p:107-119 is not listed on IDEAS
    9. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    10. Kang, Woojin & Imai, Katsushi S., 2012. "Pro-poor growth, poverty and inequality in rural Vietnam," Journal of Asian Economics, Elsevier, vol. 23(5), pages 527-539.
    11. repec:idn:journl:v:11:y:2008:i:2:p:1-42 is not listed on IDEAS
    12. Dorosh, Paul & Thurlow, James, 2018. "Beyond Agriculture Versus Non-Agriculture: Decomposing Sectoral Growth–Poverty Linkages in Five African Countries," World Development, Elsevier, vol. 109(C), pages 440-451.
    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. Angel Alcantara & Stephanie M. Brewer & James J. Jozefowicz, 2023. "Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 13(5), pages 1-9, September.

    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. Neema Ciza Angélique & Vwima Stany & Philippe Lebailly & Hossein Azadi, 2022. "Agricultural Development in the Fight against Poverty: The Case of South Kivu, DR Congo," Land, MDPI, vol. 11(4), pages 1-24, March.
    2. Valensisi, Giovanni & Gauci, Adrian, 2013. "Graduated without passing? The employment dimension and LDCs' prospects under the Istanbul Programme of Action," MPRA Paper 86966, University Library of Munich, Germany.
    3. Aftab Ahmad, 2020. "Poverty Terrorism Nexus: A Case Study Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(4), pages 162-172, December.
    4. Matthys, Marie-Luise & Acharya, Sushant & Khatri, Sanjaya, 2021. "“Before cardamom, we used to face hardship”: Analyzing agricultural commercialization effects in Nepal through a local concept of the Good Life," World Development, Elsevier, vol. 141(C).
    5. Nga Thi Viet Nguyen & Felipe F. Dizon, 2017. "The Geography of Welfare in Benin, Burkina Faso, Côte d'Ivoire, and Togo," World Bank Publications - Reports 27994, The World Bank Group.
    6. Sèna Kimm Gnangnon, 2023. "Do unilateral trade preferences help reduce poverty in beneficiary countries?," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 249-288, February.
    7. Philip Verwimp & Sisi Zhang, 2018. "The welfare impact of Vietnam’s national target programme ‘building a new countryside’: A quasi-experimental evaluation," WIDER Working Paper Series 164, World Institute for Development Economic Research (UNU-WIDER).
    8. Boureima Sawadogo, 2024. "Can Burkina Faso’s Agricultural Mechanization Program Reduce Poverty in the Country," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(4), pages 1016-1036, August.
    9. Ligon, Ethan & Sadoulet, Elisabeth, 2018. "Estimating the Relative Benefits of Agricultural Growth on the Distribution of Expenditures," World Development, Elsevier, vol. 109(C), pages 417-428.
    10. Birthal, Pratap S. & Hazrana, Jaweriah & Negi, Digvijay S., 2020. "Diversification in Indian agriculture towards high value crops: Multilevel determinants and policy implications," Land Use Policy, Elsevier, vol. 91(C).
    11. Mukashov, Askar & Thurlow, James, 2026. "Promoting regional income equity under structural transformation and climate change: An economywide analysis for Senegal," Economic Systems, Elsevier, vol. 50(1).
    12. Benfica, R. & Henderson, H., 2018. "IFAD RESEARCH SERIES 23 - The effect of the sectoral composition of economic growth on rural and urban poverty," IFAD Research Series 280072, International Fund for Agricultural Development (IFAD).
    13. Musa Hasen Ahmed & Hiwot Mekonnen Mesfin, 2017. "The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    14. Isaac Doku, 2022. "Are Developing Countries Using Climate Funds for Poverty Alleviation? Evidence from Sub-Saharan Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 3026-3049, December.
    15. Peter Warr & Waleerat Suphannachart, 2021. "Agricultural Productivity Growth and Poverty Reduction: Evidence from Thailand," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 525-546, June.
    16. Wang, Maolin & Lin, Huiting & Huang, Yehua & Lu, Huiyan, 2023. "Poverty alleviation and firm productivity: Evidence from China's minimum wage system," International Review of Financial Analysis, Elsevier, vol. 87(C).
    17. World Bank, 2017. "Ethiopia Country Environmental Analysis," World Bank Publications - Reports 33947, The World Bank Group.
    18. Tammy M Nicastro & Lauren Pincus & Elly Weke & Abigail M Hatcher & Rachel L Burger & Emiliano Lemus-Hufstedler & Elizabeth A Bukusi & Craig R Cohen & Sheri D Weiser, 2022. "Perceived impacts of a pilot agricultural livelihood and microfinance intervention on agricultural practices, food security and nutrition for Kenyans living with HIV," PLOS ONE, Public Library of Science, vol. 17(12), pages 1-22, December.
    19. SIngh Verma, Juhee & Sharma, Pritee, 2019. "Potential of Organic Farming to Mitigate Climate Change and Increase Small Farmers’ Welfare," MPRA Paper 99994, University Library of Munich, Germany.
    20. Erumban, Abdul A. & de Vries, Gaaitzen J., 2024. "Structural change and poverty reduction in developing economies," World Development, Elsevier, vol. 181(C).

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    Statistics

    Access and download statistics

    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:eco:journ1:2020-05-33. 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: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijefi .

    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.