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Diane Publishing Books
Revisiting Growth & Poverty Reduction in Indonesia: What Do Subnational Data Show?
Arsenio M. Balisacan, Ernesto M. Pernia, & Abuzar Asra. Indonesia has an impressive record of economic growth & poverty reduction over the past 2 decades. The growth-poverty nexus appears strong at the aggregate level. Newly constructed panel data on the country’s 285 districts, however, reveal huge differences in poverty changes, subnational economic growth, & local attributes. Results of econometric analysis show that besides growth, other factors directly influence the welfare of the poor, apart from their impact on growth itself. Among the critical ones are infrastructure, human capital, ag. price incentives, & access to technology. Thus, while fostering economic growth is evidently crucial, a more complete poverty reduction strategy should take into account these relevant factors.
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