Jurnal Ekonomi Pembangunan
Vol. 22 No. 1 (2024): Jurnal Ekonomi Pembangunan

Does the Manufacturing Industry Reduce Poverty on Sumatra Island?

Mukhlis, Dr. (Unknown)
Suhel, Dr (Unknown)
Aulia, Yunita (Unknown)
Indah Lestari, Putri (Unknown)
Hamira (Unknown)



Article Info

Publish Date
30 Jun 2024

Abstract

Poverty alleviation is an important priority for governments. Encouraging manufacturing growth is often seen as an effective strategy to alleviate poverty. However, the impact of such growth on poverty rates in Sumatra Island remains unclear. This study analyze the impact of manufacturing growth on poverty rates in 10 provinces in Sumatra Island, using secondary data from 2008 to 2022. Using the quantitative approach and panel data regression analysis, the results show that industrial growth in Sumatra Island, although not significant, has an impact on poverty reduction. However, industrial growth can indirectly absorb labor. Labor and education variables have a negative and significant effect on poverty.  These findings highlight the need for policy interventions focusing on vocational education and training, infrastructure improvement, economic diversification, labor policies, and local community empowerment to effectively reduce poverty.

Copyrights © 2024






Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Pembangunan is a peer-reviewed journal that provides a forum for scientific works pertaining to Development Economics. Published twice in a year (June and December). This Journal has p-ISSN 1829-5843, and e-ISSN 2685-0788. This journal was first published since June 2003 by the ...