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Journal : JDE (Journal of Developing Economies)

Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java Province Khaqiqi, Moh. Nur; Sugiharti, Lilik
Journal of Developing Economies Vol. 10 No. 1 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i1.57962

Abstract

Central Java, despite experiencing robust economic growth, continues to grapple with significant poverty, reflecting a broader national challenge of uneven wealth distribution. The poverty rate as of 2023 stands at 10.77%, highlighting persistent economic disparities. The study aims to analyze how socioeconomic factors like economic growth, HDI, and wage levels contribute to poverty alleviation within the region. The research uses a quantitative approach, employing regression random effect models to understand the dynamics between these variables and poverty rates over the years 2014-2023. Data were processed using Stata 17. The analysis indicates that economic growth in Central Java has an insignificant direct impact on reducing poverty. The research highlights a significant negative correlation between HDI and poverty levels. This study found that wage increases have not significantly impacted poverty reduction. Simultaneously, GDRP growth, HDI, and wages affect poverty in Central Java province. The findings suggest that merely focusing on economic growth and wage increases is not enough to reduce poverty. Comprehensive strategies that also improve human development indices and address income distribution are crucial for effective poverty alleviation.
Convergence Analysis of Economic Growth in South Kalimantan Sopiana, Yunita; Mursinto, Djoko; Sugiharti, Lilik
Journal of Developing Economies Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.28632

Abstract

The objectives of this research are 1) testing and analyzing the level of sigma convergence in South Kalimantan; 2) testing and analyzing the convergent beta, including the absolute beta convergence and conditional beta convergence. This study uses static panel data covering 13 regencies/cities in South Kalimantan observed between 2010 and 2019. The data analysis uses the ordinary least square (OLS) regression model. The results showed a sigma convergence marked by a declining variation coefficient in each regency/city. The absolute beta and conditional beta also converged. Poor areas' economic growth is faster than the prosperous regions so they catch up. There has to be close coordination between the central and local governments in formulating policies in handling government and private investment and improving workers' productivity in the agricultural and mining sectors in South Kalimantan.