Analysis Of The Relationship Between Economic Growth And Poverty: Indonesian Case Study 2018-2022

Authors

  • Salwanah Disty Nathania Faculty of Economics and Business, University of Jember
  • Iklilah Muzayyanah Faculty of Economics and Business, University of Jember

Keywords:

Economic growth, Poverty, Simple linear regression, The relationship of economic growth and poverty, Government policy.

Abstract

Poverty and economic growth are two important problems in development that are interrelated. Economic expansion is expected to reduce poverty and improve people's welfare. However, depending on government policy and how income is allocated, economic growth does not always have a favorable impact on poverty. This research aims to look at the relationship between road density which represents infrastructure, life expectancy which represents health, and average years of schooling, and the illiteracy rate which represents education and development inequality between regions in Indonesia. This research uses a direct linear regression approach to examine the relationship between poverty and economic growth in Indonesia. The GDP growth rate is used in this research to measure the independent variable economic growth, while the proportion of the population living in poverty is used to assess the dependent variable poverty. The Indonesian Central Bureau of Statistics (BPS) provided secondary data for this research from 2018 to 2022. The findings show that poverty and economic growth.

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Published

2023-04-04