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Inflation and Income Inequality in Riau Province Asrofillah, Muhammad Fuad; Arimurti, Rizqa
ABEC Indonesia Vol. 12 (2024): 12th Applied Business and Engineering Conference
Publisher : Politeknik Negeri Bengkalis

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Abstract

This study investigates the relationship between inflation, economic growth, and income inequality, focusingon the Riau province. This research uses panel data from 12 districts / cities in Riau province with the period 2018-2022and uses the granger causality test with EViews 13 software. The findings reveal no causal relationship between inflationand income inequality during the observed period, indicating that fluctuations in inflation rates do not predict changes inincome inequality, nor vice versa. This conclusion highlights the significance of government policy, economic structure,education, and labor force participation over inflation. While some studies suggest that moderate inflation may reduceinequality by increasing the value of assets held by lower-income groups, this effect is context-dependent. Furthermore,the analysis of economic growth reveals a complex relationship with income inequality, where the Granger causality testshows no predictive link, especially in developing nations where growth benefits often favor high-income groups.Although some research identifies a causal relationship under specific circumstances, the overall implication is thattargeted policy interventions addressing labor market dynamics and redistribution are essential for mitigating incomeinequality, rather than relying solely on economic growth. The study emphasizes the need for context-specific approachesto understand and address income inequality effectively.
Eradicating Extreme Poverty in Bengkalis Regency: A Strategic Breakthrough with Holistic Approach Asrofillah, Muhammad Fuad; Arimurti, Rizqa; Rambe, Armita Novriana
Journal of Public Representative and Society Provision Vol. 4 No. 3 (2024): Journal of Public Representative and Society Provision
Publisher : Pusat Studi Pembangunan dan Pemberdayaan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55885/jprsp.v4i3.448

Abstract

Extreme poverty in Bengkalis Regency is one of the main challenges of regional development, especially in coastal and island areas. This article analyzes strategies to accelerate the elimination of extreme poverty by using a holistic approach of socio-economic programs and government intervention innovations. The study focuses on programs such as Gerakan Desa Mandiri and Direct Cash Assistance that are designed to improve the welfare of extreme poor households through entrepreneurship training, cash transfers, and basic infrastructure development. Using data from the 2023 Integrated Database Updating (PBDT) and 2024 BPS, multiple linear regression analysis was conducted to identify the determinants of program success. Results show an extreme poverty reduction of 7% between 2023 and 2024, with the highest achievements in Mandau (31%) and Rupat (23%) sub-districts. However, major challenges remain in remote areas such as Bengkalis sub-district. This article suggests intensification of community-based programs, improving access to employment, and cross-sector coordination to achieve the target of eliminating extreme poverty by 2025.