Economic Development Analysis Journal
Vol 8 No 4 (2019): Economics Development Analysis Journal

THE The Nexus Between Poverty, Education and Economic Growth in Indonesia

Amaluddin Amaluddin (Faculty of Economics and Business, Universitas Pattimura, Indonesia)



Article Info

Publish Date
10 Mar 2020

Abstract

The causal relationship between poverty, education and economic growth has been widely studied in many countries, however, the results of a lot of studies demonstrate a controversial point of view and diverse conclusions which may be caused by differences in methodologies and development policies. The purpose of this study is firstly, to investigate the dynamic causality relationship between education, poverty, and economic growth both in the short and long-run, secondly, to analyze the dynamic response of poverty to shocks of education and economic growth. This study applied the quantitative method approach by using Panel Error Error Correction Model (PVECM). All secondary data was taken from BPS, in the form of panel data of 33 provinces in Indonesia during the period 2010-2018. This study found strong evidence that there was a long-run feedback causality linkage between poverty, education, and economic growth, while in the short-run, only found a bi-directional causality relationship between education and economic growth. The shocks of education and economic growth were responded negatively by the poverty variable, indicating that improving the quality of education and economic growth plays a vital role or has an impact on poverty reduction.

Copyrights © 2019






Journal Info

Abbrev

edaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Focus and Scope Economic Development Analysis Journal is a scientific journal who published by Department of Economic Development, Faculty of Economics, Universitas Negeri Semarang, Indonesia. this journal published four times per year on February, May, August, and November and start publishing ...