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Availability of Infrastructure for Poverty Reduction in Indonesia: Spatial Panel Data Analysis

Author

Listed:
  • Galih Pramono

    (Politeknik Statistika STIS)

  • Waris Marsisno

    (Politeknik Statistika STIS)

Abstract

Poverty is a key issue in various developing countries, including Indonesia. One of the efforts to reduce poverty is building the infrastructure. Therefore, this study aims to determine the effect of infrastructure on the level of poverty by considering the spatial effect in the period 2011–2015. This study applies spatial panel data analysis with Spatial Autoregressive (SAR) model with fixed effect. The findings show that the infrastructure of electricity, health, sanitation, and building of senior high school has a significant negative impact on the percentage of the underprivileged people. Meanwhile, the building of elementary school has a significant positive impact on the percentage of the underprivileged people.

Suggested Citation

  • Galih Pramono & Waris Marsisno, 2018. "Availability of Infrastructure for Poverty Reduction in Indonesia: Spatial Panel Data Analysis," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 157-180, Desember.
    • Handle: RePEc:lpe:efijnl:201810
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    References listed on IDEAS

    as
    1. Novi Maryaningsih & Oki Hermansyah & Myrnawati Savitri, 2014. "Pengaruh Infrastruktur Terhadap Pertumbuhan Ekonomi Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 17(1), pages 1-38, July.
    2. Jonathan Haughton & Shahidur R. Khandker, 2009. "Handbook on Poverty and Inequality," World Bank Publications - Books, The World Bank Group, number 11985, December.
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    Cited by:

    1. Carunia Mulya Firdausy & Dwi Andayani Budisetyowati, 2022. "Variables, Dimensions, and Indicators Important to Develop the Multidimensional Poverty Line Measurement in Indonesia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(2), pages 763-802, July.

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