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Growth, Growth Accelerations, and the Poor: Lessons from Indonesia

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  • Bhattacharyya, Sambit
  • Resosudarmo, Budy P.

Abstract

We study the impact of growth and growth accelerations on poverty and inequality in Indonesia using a new panel dataset covering 26 provinces over the period 1977–2010. This dataset allows us to distinguish between mining and non-mining in Indonesia. Growth in non-mining significantly reduces poverty and inequality. In contrast, overall growth and growth in mining appears to have no effect on the same. Growth acceleration in non-mining reduces poverty and inequality whereas the same in mining increases poverty. We expect that the degree of forward and backward linkages of mining and non-mining sectors explains the asymmetric result.

Suggested Citation

  • Bhattacharyya, Sambit & Resosudarmo, Budy P., 2015. "Growth, Growth Accelerations, and the Poor: Lessons from Indonesia," World Development, Elsevier, vol. 66(C), pages 154-165.
  • Handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:154-165
    DOI: 10.1016/j.worlddev.2014.08.009
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    Cited by:

    1. Edwards, Ryan B., 2016. "Mining away the Preston curve," World Development, Elsevier, vol. 78(C), pages 22-36.
    2. Zabsonré, Agnès & Agbo, Maxime & Somé, Juste, 2018. "Gold exploitation and socioeconomic outcomes: The case of Burkina Faso," World Development, Elsevier, vol. 109(C), pages 206-221.
    3. Yessi Vadila & Budy P. Resosudarmo, 2020. "Tariff reform and income inequality in Indonesia," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 455-475, June.
    4. Broad, Robin & Cavanagh, John, 2015. "Poorer Countries and the Environment: Friends or Foes?," World Development, Elsevier, vol. 72(C), pages 419-431.
    5. Iván González Gordón & Budy P. Resosudarmo, 2019. "A sectoral growth‐income inequality nexus in Indonesia," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(1), pages 123-139, March.

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    More about this item

    Keywords

    growth; growth accelerations; mining; non-mining; poverty; inequality;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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