TY  - JOUR
TT  - Policies to Eliminate Poverty Rate in Indonesia
AU  - Afandi, Akhsyim
AU  - Wahyuni, Dwi
AU  - Sriyana, Jaka
PY  - 2017
DA  - March
JF  - International Journal of Economics and Financial Issues
JO  - IJEFI
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4138
SP  - 435
EP  - 441
VL  - 7
IS  - 1
KW  - Gross Domestic Product
KW  - investment
KW  - inflation
KW  - Gini ratio
KW  - poverty
N2  - This study aims to analyze the factors that influence the poverty rate in Indonesia in the period of 1981-2013. This research uses Error Correction Model to estimate the empirical poverty model. The findings may be explained as follows: Economic growth does not influence the poverty reduction; meanwhile inflation has a significant positive effect on the poverty level. Foreign direct investment as an indicator of economy openness has a negative impact on the poverty. In addition, Gini ratio as an income equality measurement has no significant influence on the poverty level. These findings show that the poverty level depends on macroeconomic instability especially price level.  Higher inflation rate leads to higher rate of poverty in the country. Furthermore, the central government should keep the monetary sector using tight monetary policy to eliminate the poverty level.
UR  - https://dergipark.org.tr/tr/pub/ijefi/issue//353218
L1  - https://dergipark.org.tr/tr/download/article-file/364217
ER  -