Study of Poverty in Indonesia with The ECM Approach

Syamsul Amar, Ariusni Ariusni () and Alpon Satrianto
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Syamsul Amar: Universitas Negeri Padang, Department of Economics
Ariusni Ariusni: Universitas Negeri Padang, Department of Economics
Alpon Satrianto: Universitas Negeri Padang, Department of Economics

A chapter in Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022), 2025, pp 248-263 from Springer

Abstract: Abstract This study aims to examine the determinants of poverty in Indonesia including: economic growth, income distribution, consumption, unemployment and investment. This study uses secondary data. The data in this study were obtained through literature study as the data collection method. The research method used in the analysis is the Error Correction Model (ECM). The results showed that growth of economic had a positive and insignificant effect on poverty in short and long term, while it is negative corelation and insignificant effect in the short term. The distribution of income is positively and not significantly correlated with poverty in the short term but it is is directly proportional and insignificant to poverty in the long term. In addition, unemployment is correlated positively and insignificantly in the short run, but in the long run, unemployment is negatively and insignificantly correlated with poverty. Investment is correlated negatively and significantly with poverty in the long-run estimation, but in the short term, investment is positively and significantly correlated with poverty. Consumption is directly proportional and significant to poverty in the short and long run.

Keywords: poverty; economic growth; income distribution; consumption; investment; unemployment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-839-4_22

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DOI: 10.2991/978-94-6463-839-4_22

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