IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/41185.html
   My bibliography  Save this paper

Finding out of the Determinants of Poverty Dynamics in Indonesia: Evidence from Panel Data

Author

Listed:
  • Teguh, Dartanto
  • Nurkholis, Nurkholis

Abstract

This study aims to examine the determinants of poverty dynamics in Indonesia. This study applies the spell approach of poverty experience and the ordered logit model to identify the poverty status of households: poor, transient poor (-), transient poor (+) and non-poor. Observing the Susenas balanced panel dataset of 2005 and 2007 covering 8,726 households, we found that 28% of poor households classified as poor (remained poor in two periods) while 7% of non-poor households are vulnerable to being transient poor (-). Our estimations confirmed that the important factors of poverty dynamics in Indonesia are educational attainment, number of household members, physical assets, employment status, health shocks, access to electricity, and changes in the household size, in the working sector and in the microcredit program. We also found that households living in Java-Bali are more vulnerable to negative shocks while households living outside Java-Bali are relatively resilient to negative shocks.

Suggested Citation

  • Teguh, Dartanto & Nurkholis, Nurkholis, 2011. "Finding out of the Determinants of Poverty Dynamics in Indonesia: Evidence from Panel Data," MPRA Paper 41185, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41185
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/41185/1/MPRA_paper_41185.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. repec:ebl:ecbull:v:9:y:2003:i:3:p:1-12 is not listed on IDEAS
    2. Ingrid Woolard & Stephan Klasen, 2005. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 865-897.
    3. Bigsten, Arne & Kebede, Bereket & Shimeles, Abebe & Taddesse, Mekonnen, 2003. "Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys," World Development, Elsevier, vol. 31(1), pages 87-106, January.
    4. repec:dau:papers:123456789/4994 is not listed on IDEAS
    5. Armida Alisjahbana & Arief Anshory Yusuf, 2003. "Poverty Dynamics In Indonesia: Panel Data Evidence," Working Papers in Economics and Development Studies (WoPEDS) 200303, Department of Economics, Padjadjaran University, revised Jul 2003.
    6. Guillermo Cruces & Quentin T. Wodon, 2003. "Transient and chronic poverty in turbulent times: Argentina 1995-2002," Economics Bulletin, AccessEcon, vol. 9(3), pages 1-12.
    7. Sparrow, Robert & Suryahadi, Asep & Widyanti, Wenefrida, 2013. "Social health insurance for the poor: Targeting and impact of Indonesia's Askeskin programme," Social Science & Medicine, Elsevier, vol. 96(C), pages 264-271.
    8. repec:dau:papers:123456789/1562 is not listed on IDEAS
    9. Sawada Yasuyuki & Sugawara Shinya & Shoji Masahiro & Shinkai Naoko, 2014. "The Role of Infrastructure in Mitigating Poverty Dynamics: The Case of an Irrigation Project in Sri Lanka," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 1-28, July.
    10. McCulloch, Neil & Calandrino, Michele, 2003. "Vulnerability and Chronic Poverty in Rural Sichuan," World Development, Elsevier, vol. 31(3), pages 611-628, March.
    11. Neil McCulloch & Bob Baulch, 2000. "Simulating the impact of policy upon chronic and transitory poverty in rural Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 100-130.
    12. Suryahadi, Asep & Suryadarma, Daniel & Sumarto, Sudarno, 2009. "The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 89(1), pages 109-117, May.
    13. Wenefrida Widyanti & Asep Suryahadi & Sudarno Sumarto & Athia Yumna, 2009. "The Relationship between Chronic Poverty and Household Dynamics : Evidence from Indonesia," Microeconomics Working Papers 22554, East Asian Bureau of Economic Research.
    14. Gary Fields & Paul Cichello & Samuel Freije & Marta Menendez & David Newhouse, 2003. "Household income dynamics: a four-country story," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 30-54.
    15. Mckay, Andrew & Lawson, David, 2003. "Assessing the Extent and Nature of Chronic Poverty in Low Income Countries: Issues and Evidence," World Development, Elsevier, vol. 31(3), pages 425-439, March.
    16. Arsenio Balisacan & Ernesto Pernia & Abuzar Asra, 2003. "Revisiting growth and poverty reduction in Indonesia: what do subnational data show?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 329-351.
    17. Daniel Suryadarma & Wenefrida Widyanti & Asep Suryahadi & Sudarno Sumarto, 2006. "From Access to Income : Regional and Ethnic Inequality in Indonesia," Development Economics Working Papers 22547, East Asian Bureau of Economic Research.
    18. Haddad, Lawrence & Ahmed, Akhter, 2003. "Chronic and Transitory Poverty: Evidence from Egypt, 1997-99," World Development, Elsevier, vol. 31(1), pages 71-85, January.
    19. Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2003. "Evolution of Poverty During the Crisis in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 17(3), pages 221-241, September.
    20. Riyana Miranti, 2010. "Poverty in Indonesia 1984-2002: the impact of growth and changes in inequality," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 46(1), pages 79-97.
    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. Teguh Dartanto & Nurkholis, 2013. "The determinants of poverty dynamics in Indonesia: evidence from panel data," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 49(1), pages 61-84, April.

    More about this item

    Keywords

    poverty dynamics; panel data; shocks; government assistance; Indonesia;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    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:pra:mprapa:41185. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.