THE IMPACT OF THE SURAMADU BRIDGE ON RURAL POVERTY IN KABUPATEN BANGKALAN, EAST JAVA, INDONESIA

Henry Kusumas Karyadinata, Muhammad Pudjihardjo, Asfi Manzilati and Wildan Syafitri

Economic and Regional Studies (Studia Ekonomiczne i Regionalne), 2019, vol. 12, issue 4

Abstract: Subject and purpose of work: This research was conducted to measure the influence of the Suramadu Bridge on the reduction of rural poverty and to determine the impact of production factors such as physical capital, natural capital, human capital and financial capital on poverty before and after the Suramadu Bridge began operating in Kabupaten Bangkalan. Materials and methods: This study adapted the model used by Nashwari et al (2017) which was analysed applying Ordinary Least Square (OLS). The data from Village Potential 2007 and 2017 was used in the research. Results: Many production factors in the village did not have a significant effect on the poverty reduction before the Suramadu Bridge began operating. After the Suramadu Bridge opened, it has had a significant negative impact on poverty. The number of farmers, rice fields, non-agricultural activities, superior products, skills facilities and credit facilities has a significant positive effect on the reduction of the poverty level. Conclusions: The existence of the Suramadu Bridge has increased the influence of production factors in the villages on the poverty reduction in Kabupaten Bangkalan.

Keywords: Community/Rural/Urban Development; Food Security and Poverty (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:plecrs:298467

DOI: 10.22004/ag.econ.298467

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