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The Role of Agricultural Sector in Explaining Poverty in Indonesia: A Study Case of West Kalimantan

Author

Listed:
  • M. Ali Nasrun

    (Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia)

  • Fariastuti

    (Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia)

  • Sukma Indra

    (Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia)

Abstract

Poverty has become a significant economic problem and set as a priority of the United Nations (UN) in its Sustainable Development Goals (SDGs) program. Likewise, it remains a problem in the province of West Kalimantan, Indonesia, with its underprivileged population amounted to 369,730 people or 7.3% of the population in Indonesia. Meanwhile, Indonesia s agricultural sector is expected to fulfill some objectives, namely providing food and helping people get out of poverty. Therefore, this research aims to test the influence of output and labor absorption in the agricultural sector on the number of poor populations in West Kalimantan, Indonesia. It employed multiple regression to analyze panel data from 2008 to 2017 from the Indonesian and West Kalimantan s National Statistical Bureau (BPS, 2019). The research findings indicated that the output of the agricultural sector positively and significantly influences the number of people living in poverty. In contrast, labor absorption in the agriculture sector positively, yet insignificant, influences the number of people living in poverty in West Kalimantan. It might be caused by low productivity in the agricultural sector.

Suggested Citation

  • M. Ali Nasrun & Fariastuti & Sukma Indra, 2020. "The Role of Agricultural Sector in Explaining Poverty in Indonesia: A Study Case of West Kalimantan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 297-303.
    • Handle: RePEc:eco:journ1:2020-05-33
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    References listed on IDEAS

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    Cited by:

    1. Angel Alcantara & Stephanie M. Brewer & James J. Jozefowicz, 2023. "Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties," International Journal of Economics and Financial Issues, Econjournals, vol. 13(5), pages 1-9, September.

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    More about this item

    Keywords

    The Agricultural Sector; Poverty; Labor Absorption;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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