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The role of participation and empowerment in income and poverty dynamics in Indonesia 1993-2000

  • Espen Villanger
  • Anette Walstad Enes

The objective of this study is to assess whether living in a community that has a more democratic decision making system or in a society with a higher degree of participation and cooperation has any effect on household income changes and poverty reduction in Indonesia. Constructing an empowerment index and a participation index, we find that a household would have had a two percentage point higher income growth from 1993 to 2000 if it had been in a society with a high degree of cooperation compared to a society with the lowest degree of cooperation, if our results imply causality. This is substantial, since the average household per capita real income growth between 1993 and 2000 was 11 %. The participation index was found to be insignificant.

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Paper provided by CMI (Chr. Michelsen Institute), Bergen, Norway in its series CMI Working Papers with number WP 2004: 13.

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Length: 30 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:chm:wpaper:wp2004-13
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