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Economics growth, income distribution, and poverty in Central Java

Author

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  • Pramono Hariadi

    (Faculty of Economics, Jenderal Soedirman University)

Abstract

Among the central issues in policy making are poverty alleviation and increasing income distribution. This paper measures the impact of economic growth on income inequality and poverty alleviation, namely whether income inequality becomes trade-off for poverty alleviation in 35 Central Java regencies. The paper uses fixed effect model by weighting cross section weights. The results show that economic growth increases income inequality. Furthermore, economic growth alleviates poverty and increases income inequality, but the effect is smaller than the reduction in poverty. Therefore, the increased income inequality is not a trade off to poverty alleviation and the economic growth is effective to alleviate poverty.

Suggested Citation

  • Pramono Hariadi, 2009. "Economics growth, income distribution, and poverty in Central Java," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 1(3), pages 219-231, April.
    • Handle: RePEc:uii:journl:v:1:y:2009:i:3:p:219-231
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    File URL: https://journal.uii.ac.id/JEP/article/download/2289/2088
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    References listed on IDEAS

    as
    1. Nanak Kakwani & Shahid Khandker & Hyun H. Son, 2004. "Pro-poor growth: concepts and measurement with country case studies," Working Papers 1, International Policy Centre for Inclusive Growth.
    2. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    3. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
    4. Jayati Ghosh, 2010. "Poverty reduction in China and India: Policy implications of recent trends?," Working Papers 92, United Nations, Department of Economics and Social Affairs.
    5. Wodon, Quentin T., 1999. "Growth, poverty, and inequality : a regional panel for Bangladesh," Policy Research Working Paper Series 2072, The World Bank.
    6. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December.
    7. Wodon, Quentin & Velez, Eduardo, 2001. "Poverty and Inequality," MPRA Paper 12307, University Library of Munich, Germany.
    8. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
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    Cited by:

    1. Purna Fitria, 2017. "Assets and poverty status dynamics in 5 main regions in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 9(1), pages 104-113, April.
    2. Antoni Pestaria & Kamaludin & Husaini & Fadli, 2022. "The Mediating Role of Age Productivity on Human Resources Development, Health Infrastructure, and Proverty Level," International Review of Management and Marketing, Econjournals, vol. 12(1), pages 11-18.

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    More about this item

    Keywords

    Economic growth; income inequality; poverty alleviation;
    All these keywords.

    JEL classification:

    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D39 - Microeconomics - - Distribution - - - Other
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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