Poverty Alleviation Through Strengthening Economic Growth in the Agricultural Sector: A Study of 10 Indonesian Provinces

Hilda Ni’matul Jannah, Mahrus Luthfi Adi Kurniawan, Dini Yuniarti

Abstract


The percentage of poor people remains high despite high agricultural sector GRDP. This study aims to determine how the effect of strengthening economic growth in the agricultural sector on poverty alleviation in 10 provinces in Indonesia using the panel data method of the Seemingly Unrelated Regression (SUR) model using independent variables that are dependent on where these variables are obtained from BPS from 2014-2023. The results showed that the agricultural sector GRDP variable, the Index Received by Farmers, and the Human Development Index (HDI) had a negative and significant effect on poverty, the more the agricultural sector GRDP increased, the greater the contribution of the agricultural sector to the economy. This can increase the income of farmers, thus potentially reducing the number of poor people. And the Farmer Exchange Rate variable has a positive and insignificant effect on poverty. Meanwhile, the Open Unemployment Rate and the Farmer Pay Index have a positive and significant effect on poverty. This study implies that increasing farmers' productivity and income can reduce rural poverty.

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Publihser:
Universitas Ahmad Dahlan

Editorial Address:
Yogyakarta

This work is licensed under CC BY 4.0