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2018•Andalas University eThesis (Andalas University)Open access

The Impact of Economic Growth, Unemployment Rate and Government Expenditure on Poverty Rate in Indonesia

Fatmala Sari Rita

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Abstract

The purpose of this research is to see the impact of economic growth, unemployment rate and government expenditure on poverty rate in Indonesia. The methodology which is used in this research is panel data with cross-section of 33 provinces of Indonesia and time series data from 2010-2016. This research using Fixed Effect Model (FEM) to predict the relationship of independent variable on dependent variable. The research shows that economic growth and government expenditure on poverty rate has significant and negative relationship with poverty rate. The unemployment rate on poverty rate has significant and positive relationship with poverty rate. \nKeywords: Economic Growth, Unemployment Rate, Government Expenditure, Poverty Rate, Fixed Effect Model, Panel Data.

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What this paper is about

The purpose of this research is to see the impact of economic growth, unemployment rate and government expenditure on poverty rate in Indonesia. The methodology which is used in this research is panel data with cross-section of 33 provinces of Indonesia and time series data from 2010-2016. This research using Fixed Effect Model (FEM) to predict the relationship of independent variable on dependent variable. The research shows that economic growth and government expenditure on poverty rate has significant and negative relationship with poverty rate. The unemployment rate on poverty rate has significant and positive relationship with poverty rate. \nKeywords: Economic Growth, Unemployment Rate, Government Expenditure, Poverty Rate, Fixed Effect Model, Panel Data.

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Available abstract

The purpose of this research is to see the impact of economic growth, unemployment rate and government expenditure on poverty rate in Indonesia. The methodology which is used in this research is panel data with cross-section of 33 provinces of Indonesia and time series data from 2010-2016. This research using Fixed Effect Model (FEM) to predict the relationship of independent variable on dependent variable. The research shows that economic growth and government expenditure on poverty rate has significant and negative relationship with poverty rate. The unemployment rate on poverty rate has significant and positive relationship with poverty rate. \nKeywords: Economic Growth, Unemployment Rate, Government Expenditure, Poverty Rate, Fixed Effect Model, Panel Data.

Key concepts: Economics, Poverty, Poverty rate, Government expenditure, Unemployment, Panel data, Unemployment rate, Government (linguistics)

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