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Agricultural Production and its Implications on Economic Growth and Poverty Reduction

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  • Darwati Susilastuti

Abstract

The objective of the study was to analyze the magnitude of factors affecting Agricultural Production and its implications on Gross Regional Production (GRP) Growth and Poverty Reduction.Panel data from 6 provinces of center production of paddy of Indonesia for 10 years (2007-2016) were analyzed by Path Analysis method. Productivity of Agricultural Land and Wetland Area has a very strong relationship with Agricultural Production. The productivity of Agricultural Land is the dominant factor and has the significant effect on Agricultural Production.Agricultural Production has no significant effect on GRP growth rate. Agricultural Production has not been able to reduce poverty. GRP growth rate has the significant effect and is the dominant factor for poverty reduction.Based on the finding of the research, government policy programs for poverty reduction in rural areas can be done by improving agricultural cultivation technology, the extent of wetland area, increasing of agriculture-based industries and the provision of poverty reduction programs budget.

Suggested Citation

  • Darwati Susilastuti, 2018. "Agricultural Production and its Implications on Economic Growth and Poverty Reduction," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 309-320.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:3b:p:309-320
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    File URL: https://www.ersj.eu/dmdocuments/2018_XXI_1_25.pdf
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    References listed on IDEAS

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    1. Bas van Leeuwen & Peter Foldvari, 2012. "The development of inequality and poverty in Indonesia, 1932-1999," Working Papers 0026, Utrecht University, Centre for Global Economic History.
    2. Sumarto, Sudarno & Suryahadi, Asep, 2004. "The Role of Agricultural Growth in Poverty Reduction in Indonesia," MPRA Paper 60724, University Library of Munich, Germany.
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    5. Isaac B. Oluwatayo & Ayodeji O. Ojo, 2016. "Is Africa’s dependence on agriculture the cause of poverty in the continent? An empirical review," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(1), pages 93-102, January-M.
    6. Dalila Cervantes-Godoy & Joe Dewbre, 2010. "Economic Importance of Agriculture for Poverty Reduction," OECD Food, Agriculture and Fisheries Papers 23, OECD Publishing.
    7. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
    8. Diao, Xinshen & Hazell, Peter & Thurlow, James, 2010. "The Role of Agriculture in African Development," World Development, Elsevier, vol. 38(10), pages 1375-1383, October.
    9. Derek Byerlee & Alain de Janvry & Elisabeth Sadoulet, 2009. "Agriculture for Development: Toward a New Paradigm," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 15-31, September.
    10. Darwati Susilastuti, 2017. "Poverty Reduction Models: Indonesian Agricultural Economic Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 164-176.
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    1. Boima M. Bernard & Yanping Song & Sehresh Hena & Fayyaz Ahmad & Xin Wang, 2022. "Assessing Africa’s Agricultural TFP for Food Security and Effects on Human Development: Evidence from 35 Countries," Sustainability, MDPI, vol. 14(11), pages 1-21, May.
    2. Muhammad Luqman, Sheer Abbas, Mudassar Yasin, Muhammad Yaseen, Muhammad Umer Mehmood, Shahbaz Ahmad, 2022. "Rural Poverty and Its Dimensions: Evidences from North-West Region of Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 4(2), pages 39-50.

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    Keywords

    Agricultural; GRP; Poverty.;
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