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A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia

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  • Amaluddin Amaluddin

    (Faculty of Economic And Business, Pattimura University, Indonesia,)

  • Rukmuin W. Payapo

    (Faculty of Economic And Business, Pattimura University, Indonesia)

  • Abdul A. Laitupa

    (Faculty of Economic And Business, Pattimura University, Indonesia,)

  • Mohammad R. Serang

    (Faculty of Economic And Business, Pattimura University, Indonesia)

Abstract

The first purpose of this paper is to develop or construct a new human development composite index and applied to measure the performance of human development in the villages of West Seram Regency, Maluku Province. The second, to develop the priority scale of human development for development planning. The third, analyzing the effect of HDI's indicators on poverty level. This paper applies PCA, clustering analysis and panel data regression. PCA method generates index which we called Modified Human Development Index (MHDI). Based on clustering analysis, the number of villages in the high cluster is 6 villages, the medium cluster is 13 villages and low cluster is 14 villages. The modified human development performance has an important role for poverty alleviation and improving the level of people's welfare in the villages. This paper also revealed empirical study that the HDI's indicators have negative relationships and significant effect on poverty rate.

Suggested Citation

  • Amaluddin Amaluddin & Rukmuin W. Payapo & Abdul A. Laitupa & Mohammad R. Serang, 2018. "A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 325-330.
    • Handle: RePEc:eco:journ1:2018-02-39
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    References listed on IDEAS

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    Cited by:

    1. Anam Azam & Muhammad Rafiq & Muhammad Shafique & Jiahai Yuan, 2023. "Interpreting the Dynamic Nexus between Green Energy, Employment, Fossil Fuel Energy, and Human Development Index: A Panel Data Investigation," Energies, MDPI, vol. 16(7), pages 1-17, March.
    2. Maria Kofidou & Odysseas Kopsidas & Alexandra Gemitzi, 2024. "A Novel Approach to Assessing Carrying Capacity for Development by Combining Socio-Economic and Environmental Indicators: A Case Study in Greece," Land, MDPI, vol. 13(7), pages 1-14, July.

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    More about this item

    Keywords

    Human Development; Poverty; Principal Component Analysis; Clustering; Panel Data; Villages;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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