Macroeconomic Fundamentals in Alleviating Poverty in Eastern Indonesia

EasyChair Preprint 11066

Abstract

Poverty is a very complicated problem and the main cause in developing countries is related to economic development issues. Poverty itself can be viewed from various angles, for example absolute poverty and relative poverty. It is not easy to eradicate the problem of poverty, but this research tries to examine the influence of macroeconomic fundamentals on the level of poverty in Eastern Indonesia. This area is an area that is lagging behind in economic development in Indonesia. This research uses macro variables such as Minimum Wage, PDRB ADHK, Population Growth and Open Unemployment Rate. From the results of the analysis using panel data, the Fixed Effect estimation equation model is obtained. As for the Eastern Region of Indonesia consisting of 5 provinces using data from 2001 to 2021, the results show that (1) the minimum wage variable has a negative and significant effect on the poverty rate. (2) the PDRB ADHK variable has a positive and significant effect on the poverty rate, (3) the open unemployment rate variable has a positive and significant effect on poverty, and (4) the population variable has a negative and insignificant effect on the poverty level. From the results of the study it can be concluded that macroeconomic fundamentals have a simultaneous and significant effect on the level of poverty in Eastern Indonesia.

Keyphrases: GRDP ADHK, Poverty, Total Population, Unemployment, minimum wage

@booklet{EasyChair:11066,
  author    = {Rizka Marcella and Dwi Susilowati},
  title     = {Macroeconomic Fundamentals in Alleviating Poverty in Eastern Indonesia},
  howpublished = {EasyChair Preprint 11066},
  year      = {EasyChair, 2023}}