The effects of sectoral employment intensive growth on poverty :: The case study of Indonesia

WARASTRI, Suci Diah, Prof. Koji Kawabata

2009 | Tesis | S2 Magister Ekonomika Pembangunan

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The purpose of this case study is to explain the different effects of the aggregate and sectoral employment-intensive growth and productivity-intensive growth on poverty in Indonesia by decomposing per capita value added growth into three components; employment, productivity and demographic changes. We then analyze how each component affects poverty both at the aggregate level and by sector. This study uses a sample of 30 provinces in Indonesia covering the period between 2001 and 2005. Panel data regression is applied in this analysis. The findings of this study indicate that in the aggregate, the productivityintensive growth and employment-intensive growth robustly reduce poverty. The analysis of the sectoral pattern of employment-intensive growth and productivityintensive growth suggest that employment-intensive growth and productivityintensive growth in the services sector are significantly correlated with reductions in poverty.

Kata Kunci : Sectoral employment,Intensive growth,Productivity, Sectoral employment-intensive growth, productivity-intensive growth, poverty, panel regression