The Simultaneous Analysis OF Economic Growth And Poverty Case Study IN Indonesia Periode 2007-2010

Type Journal Article - Gunadarma University
Title The Simultaneous Analysis OF Economic Growth And Poverty Case Study IN Indonesia Periode 2007-2010
Author(s)
Publication (Day/Month/Year) 2013
URL http://publication.gunadarma.ac.id/handle/123456789/9551
Abstract
This study empirically investigates the simultaneity between economic growth and poverty and also analyze the predetermined variables that affect them by using a simultaneous equation framework. The endogenous variables are economic growth and poverty, while unemployment, inflation, life ex- pectancy, and literacy are predetermined variables. This research using panel data of 33 provinces in Indonesia from 2007-2010, using two stage least square (2SLS) regression model. The result show that economic growth and poverty have negative simultaneous relationship which indicate that there are complementary to each other. This study also found that unemployment is significant affect economic growth and also poverty. Furthermore, life expectancy, and literacy rate are significantly affect poverty rate.

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