Economic Growth, Social Expenditure, Unemployment, and Inflation: The Impact on Poverty in South Sumatera

Harunurrasyid, Mardalena, Syaipan Djambak, Putri Adelia

2018

Abstract

This study examines factors that influence and how to accelerate the decline in the number of poor people in South Sumatera Province from 2009 to 2017. The research used panel data regression, with the Common Effects Autoregressive (1) as the selected model. The results showed that the level of poverty in South Sumatra Province experienced an annual average decrease of 1.87 percent, while atsame period, several regencies/cities in South Sumatera experienced an increase, namely: Ogan Komering Ulu, Palembang, East OKU, Pagaralam and Prabumulih. The difference in changes in the number of poor people is a result of the occuring structural inequality, because the transition of dominant economic sectors in GDRP is not followed by the optimal labors absorption in the field. The structural imbalance contributes to the economic inequality, poverty, open unemployment and natural resources exploitation in South Sumatera. The test results show an increase in GDRP growth and social expenditure, and a decrease in the open unemployment rate and inflation affect the growth of poor people number in South Sumatera. Some public policies can be taken to accelerate the decline in the number of poor people: encouraging investment and increasing the productivity of the sector with sufficient labors absorption; utilizing the demographic bonus by improving the quality of human resources through education and community empowerment in sustaining the primary manufacturing industry; and developing the tourism services sector in order to grow synergies in the agro-industry sector, creative economy and other services sector.

Paper Citation

in Harvard Style

Harunurrasyid., Djambak S., Mardalena. and Adelia P. (2018). Economic Growth, Social Expenditure, Unemployment, and Inflation: The Impact on Poverty in South Sumatera.In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC, ISBN 978-989-758-387-2, pages 626-636. DOI: 10.5220/0008443306260636

in Bibtex Style

@conference{seabc18,
author={Harunurrasyid and Syaipan Djambak and Mardalena and Putri Adelia},
title={Economic Growth, Social Expenditure, Unemployment, and Inflation: The Impact on Poverty in South Sumatera},
booktitle={Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,},
year={2018},
pages={626-636},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008443306260636},
isbn={978-989-758-387-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,
TI - Economic Growth, Social Expenditure, Unemployment, and Inflation: The Impact on Poverty in South Sumatera
SN - 978-989-758-387-2
AU - Harunurrasyid.
AU - Djambak S.
AU - Mardalena.
AU - Adelia P.
PY - 2018
SP - 626
EP - 636
DO - 10.5220/0008443306260636