Poverty and Its Problems in the Province of West Sumatra

Zaki

University of Borobudur, Jakarta, Indonesia.

Yolanda *

University of Borobudur, Jakarta, Indonesia.

Hendry Ali

University of Borobudur, Jakarta, Indonesia.

Pudji Astuti

University of Borobudur, Jakarta, Indonesia.

*Author to whom correspondence should be addressed.


Abstract

Poverty is a problem that is difficult for many countries to overcome, so the United Nations (UN) created an SDGS agenda whose main goal is to end all forms of poverty in this world by 2030. To overcome this poverty, many countries are trying to see what factors cause poverty to occur. This research tries to look at the causes of poverty in terms of education, Human Development Index, Unemployment, Income Inequality, and Labor Force Participation Rate in Districts/Cities of West Sumatra Province from 2011-2019. The research analysis technique uses panel data regression with cross sections of 19 districts and cities and the 2011-2019 time series. Estimation of the relationship using the panel model regression method is the Common Effect Model, Fixed Effect Model and Random Effect Model. Selection of the best model is done by Chow tetst and Hausman tests is the Random Effect Model. Based on the research results, it was found that education and the Human Development Index can significantly reduce poverty and unemployment, and income inequality can significantly increase poverty, as well as the Labor Force Participation Rate. The results of this study provide recommendations to local governments to provide access to higher education and better health for the whole community as well as provide employment and reduce income inequality that occurs.

Keywords: Poverty, education, human development index, unemployment, income inequality, labor force participation rate


How to Cite

Zaki, Yolanda, Ali , H., & Astuti , P. (2023). Poverty and Its Problems in the Province of West Sumatra. South Asian Journal of Social Studies and Economics, 19(2), 1–9. https://doi.org/10.9734/sajsse/2023/v19i2671


References

Odilovich OА, Najibullah E. How to reduce poverty in Afghanistan. Academic Journal of Digital Economics and Stability; 2021.

Rouf KA. While poverty is a global problem resulting from global issues, its definition and solution can only be found locally. International Journal of Research Studies in Management. 2017;6(2).

Available:https://doi.org/10.5861/ijrsm.2017.2000

Kuzmenko SH, Filipenko TV, Ryabev AA, Tonkoshkur MV, Shtal TV. Current conditions, causes and increase of poverty in Ukraine. Asia Life Sciences Supp. 2020;22(2).

Markova VN, Alekseeva KI, Neustroeva AB, Potravnaya EV. Analysis and forecast of the poverty rate in the arctic zone of the Republic of Sakha (Yakutia). Studies on Russian Economic Development. 2021;32(4).

Available:https://doi.org/10.1134/S1075700721040109

Si S, Ahlstrom D, Wei J, Cullen J. Business, entrepreneurship and innovation toward poverty reduction. Entrepreneurship and Regional Development; 2020. Available:https://doi.org/10.1080/08985626.2019.1640485

Jhingan ML. The economics of development and planning. PT Rajagrafindo Persada; 2014.

Sanjaya W. Strategi pembelajaran berorientasi standar proses pendidikan. Jakarta: Kencana Prenada Media Grup; 2012.

Abaidoo A. The nexus between education and poverty reduction in Ghana from 2013 to 2017. Cogent Social Sciences. 2021;7(1). Available:https://doi.org/10.1080/23311886.2021.1986933

Awan MS, Malik N, Sarwar H. Waqas M. Impact of education on poverty reduction. International Journal of Academic Research. 2011;3(1).

Ghafoor Awan A, Malik A. Impact of female education on poverty reduction: An evidence from Pakistan. Global Journal of Management, Social Sciences and Humanities. 2020;6(2).

Ngepah N, Makgalemele T, Saba CS. The relationship between education and vulnerability to poverty in South Africa. Economic Change and Restructuring. 2023;56(1). Available:https://doi.org/10.1007/s10644-022-09439-8

Yolanda Y. Analysis of factors affecting inflation and its impact on human development index and poverty in Indonesia. European Research Studies Journal. 2017;20(4). Available:https://doi.org/10.35808/ersj/873

Sihite L, Daulay M, Lubis I, Parinduri RE. The effect of village funds, Human Development Index (HDI), and economic growth on decrease of poverty level in North Sumatera Province. International Journal Public Budgeting, Accounting and Finance. 2019;4.

Wibowo A, Ridha MR. The effect of economic growth, unemployment rate and human development on poverty in Indonesia (panel model approach in 4 poorest provinces). D’cartesian. 2021; 10(1).

Available:https://doi.org/10.35799/dc.10.1.2021.32375

Wiranatakusuma DB, Primambudi G. Determinants of poverty in Indonesia. Sociologia y Tecnociencia. 2021;11(2). Available:https://doi.org/10.24197/st.2.2021.243-267

Yusuf LA, Dai SI. The impact of unemployment and human development index on poverty in Gorontalo Province 2008-2017. Jambura Equilibrium Journal. 2020;2(1). Available:https://doi.org/10.37479/jej.v2i1.4495

Sukirno S. Makro ekonomi teori pengantar Ke-3. Jakarta; 2011.

Nurdiana Hasan M, Arisah N, Riesso AS, Hasanah DF. An analysis of the effect of economic growth, inflation, and open unemployment on poverty in South Sulawesi Province. Quest Journals Journal of Research in Business and Management. 2020;8(9).

Badu RR, Canon S, Akib FHY. The impact of economic growth and unemployment rate on poverty in Sulawesi. Jambura Equilibrium Journal. 2020;2(1). Available:https://doi.org/10.37479/jej.v2i1.4499

Sinuraya MB, et al. Analysis of effects of economic growth, human development index, population, unemployment and investment on poverty levels in the North Sumatra Province. International Journal of Research and Review. 2021;8(12). Available:https://doi.org/10.52403/ijrr.20211282

Quy NH. Relationship between economic growth, unemployment and poverty: Analysis at provincial level in Vietnam. International Journal of Economics and Finance. 2016;8(12). Available:https://doi.org/10.5539/ijef.v8n12p113

Lismana AI, Sumarsono H. Analysis of the Effect of Population Growth, Human Development Index and Unemployment Rate on Poverty in West Java Province 2017-2020. Jurnal Ekonomi Pembangunan. 2022;20(01).

Available:https://doi.org/10.22219/jep.v20i01.20286

Rizki M, Dinya Solihati Politeknik STIA LAN Jakarta K. The impact of corruption, inflation and unemployment towards poverty in Indonesia. Journal of Business Administration Economic & Entrepreneurship. 2022;4(1).

Pasha MK, Pratama AAN. Human development index, zakat infaq sadaqah, income inequality, and poverty in Java. Annual International Conference on Islamic Economics and Business (AICIEB). 2021;1. Available:https://doi.org/10.18326/aicieb.v1i0.16

Sehrawat M, Giri AK. The impact of financial development, economic growth, income inequality on poverty: Evidence from India. Empirical Economics. 2018; 55(4). Available:https://doi.org/10.1007/s00181-017-1321-7

Bogari A. Financial development, income inequality and poverty alleviation: Some empirical evidence. Research in Applied Economics. 2021;13(4). Available:https://doi.org/10.5296/rae.v13i4.19018

Ali M, Tariq M, Khan MA. Economic growth, financial development, income inequality and poverty relationship: An empirical assessment for developing countries. IRASD Journal of Economics. 2022;4(1).

Available:https://doi.org/10.52131/joe.2022.0401.0057

Shaba NY, Yelwa M, SAJ O, Magaji S. Manifestation of income inequality and poverty prevalence in selected North Central States of Nigeria. Journal of Economics and Public Finance. 2018;4(2).

Available:https://doi.org/10.22158/jepf.v4n2p130

Alfionika R, Yulmardi Y, Hardiani H. Analisis determinasi tingkat kemiskinan di kabupaten/kota Provinsi Jambi. E-Jurnal Ekonomi Sumberdaya Dan Lingkungan. 2021;10(1). Available:https://doi.org/10.22437/jels.v10i1.12456

Deby Alsya V, Triwahyuningtyas N, Murtatik S. Analysis of factors affecting poverty level in Java Island. International Journal of Social Service and Research. 2021;1(2). Available:https://doi.org/10.46799/ijssr.v1i2.29

Saifuloh NI, Ahmad AA, Suharno S. The effect of employment aspects on poverty in Central Java Indonesia. Eko-Regional Jurnal Pengembangan Ekonomi Wilayah. 2019;14(1). Available:https://doi.org/10.20884/1.erjpe.2019.14.1.1310

Ghozali I. Aplikasi analisis multivariete dengan program IBM SPSS 23, Edisi 8. In Badan Penerbit Universitas Diponegoro; 2016.