KEK (Kajian Ekonomi dan Keuangan)
Vol 19, No 1 (2015)

THE ROLES OF BASIC INFRASTRUCTURE ON POVERTY ALLEVIATION IN INDONESIA

Nugroho, Sidiq Suryo (Unknown)



Article Info

Publish Date
01 Nov 2016

Abstract

The effect of infrastructure on poverty has been studied many times by researchers, but investigation about the transmission channel of infrastructure's effect on poverty needed more investigation due to more specific policy compiling. The aim of this present study is to investigate the role of basic infrastructure to fight the poverty by depicting the relationship of lenght of road, electricity transmission, clean water distribution, number of health care center, and number of school in particular areas with the poverty rate in Indonesia. This present study uses simple regression method, using panel data from 26 province level for year 2000-2008 in Indonesia. The result of this study reveals that road, electricity transmission, number of health care center, and number of school have an impact on poverty rate through economic growth which is proxied by human development index (HDI), in the other words the relationship between infrastructure and poverty is indirect relationship. Thus, if the Indonesian government is serious about reducing poverty, then the policy should give more emphasis on the poor and provide them with those basic infrastructures; and also have to improve the accessibility of the infrastructures for the poor people although its effect is indirectly.

Copyrights © 2015






Journal Info

Abbrev

kek

Publisher

Subject

Economics, Econometrics & Finance

Description

Kajian Ekonomi dan Keuangan (KEK henceforth)was first published in 1996 as an initiative of researchers of Ministry of Finance. In the earlier years of its publication, KEK was also known as Kajian Ilmiah Ekonomi dan Keuangan (KIEK). Since then KEK has been published regularly as one of the ...