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Contribution of Products Domestic Bruto (GDP) Based on the Business Field on Poverty on Indonesia

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  • Sessu, Andi
  • Jamali, Hisnol

Abstract

The economic development in Indonesia from period to period until now is increasing because Indonesia is very rich with natural and human resources, only quality human resources need to improve their quality in order to be able to develop better economy in the future, however unemployment and poverty rate of Indonesia is still high compared to some other countries in the world, therefore it is necessary jointly between individual society, private and the government has maximum efforts to reduce unemployment and poverty in Indonesia, by increasing the growth of gross domestic product (GDP) contribution by business field can reduce poverty level in Indonesia. The result of multiple regression analysis shows that the contribution of GDP according to business field can decrease poverty level in Indonesia. This condition indicates that agriculture, forestry, fishery sector has a negative effect on poverty rate in Indonesia which means any decrease in agriculture, forestry, fishery by one unit affect the decrease of poverty level of 0.203 at constant -7,70, while the other three factors mining and quarrying, processing industry factor and trade factor have a positive effect on poverty level which means that every increase of one unit leads to a significant increase in poverty not yet able to reduce poverty level but has significant influence on all variables to poverty level in Indonesia. The results of multiple correlation coefficient analysis indicate that from each sector, agriculture, forestry, mining fishery, excavation, processing industry and trade are very strong together that is equal to 97,70%, besides coefficient value of determination equal to 0,96% whereas the remaining 4% of the poverty rate is influenced by other factors.

Suggested Citation

  • Sessu, Andi & Jamali, Hisnol, 2018. "Contribution of Products Domestic Bruto (GDP) Based on the Business Field on Poverty on Indonesia," OSF Preprints ymwbf, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:ymwbf
    DOI: 10.31219/osf.io/ymwbf
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    References listed on IDEAS

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    1. Tobias Axelsson & Andrés Palacio, 2018. "Transforming Indonesia: Structural Change from a Regional Perspective, 1968–2010," Palgrave Studies in Economic History, in: Vicente Pinilla & Henry Willebald (ed.), Agricultural Development in the World Periphery, chapter 11, pages 281-305, Palgrave Macmillan.
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    3. Fatai, K & Oxley, Les & Scrimgeour, F.G, 2004. "Modelling the causal relationship between energy consumption and GDP in New Zealand, Australia, India, Indonesia, The Philippines and Thailand," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 64(3), pages 431-445.
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