JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN

The Effect of Financial Capital, Human Capital, and Early Marriage on Extreme Poverty in Kaliombo Village

Ismatu Maula — 2024-06-30

This study aims to determine the effect of financial capital (income, asset ownership and employment status) and human capital (education, outlook on life and early marriage) on extreme poverty in Kaliombo Village. The type of data used is primary data obtained from research questionnaires and short interviews to 100 respondents in Kaliombo Village with binary logistic regression analysis method. Based on the results, five variables (income, education, house asset ownership, other asset ownership, and outlook on life) have a significant influence on extreme poverty in Kaliombo Village and two other variables (early marriage and employment status) do not have a significant influence on extreme poverty in Kaliombo Village. However, all research variables simultaneously affect extreme poverty in Kaliombo Village.

Keywords: Poverty Measurement, Low income, Education Quality, Regression Models

JEL Classification: C360, I320, I210

Fiscal Decentralization and Governance Performance: Empirical Evidence from the District City Level in Indonesia

Septhia Astriana — 2024-06-30

Decentralization policies are believed to be able to improve government governance, but research examining the relationship between decentralization and governance issues is still very limited. This study intends to examine the relationship between fiscal decentralization and governance performance as evaluated by SAKIP using panel data collected from 508 districts/cities in Indonesia between 2016 and 2021. Revenue indicators and expenditure indicators are used in the fiscal decentralization indicator. This study shows that fiscal decentralization, both in terms of revenue and expenditure, has a considerable favorable impact on governance performance using the Panel Ordered Probit Regression. The sub-sample study reveals that the impact of fiscal decentralization on governance performance varies depending on whether a jurisdiction is a district or a city, as well as whether it is located in the Java area or outside Java. Where district regional governments and regional governments outside of Java are more affected by fiscal decentralization.

The Impact of the Cash Transfer Program on Poverty of Households in Bogor Regency

Siti Nurhasanah — 2024-06-30

The Covid-19 pandemic caused that the number of poor people increase more than 26 million people on March 2020. That is the highest since 2017. To save the lives of poor families affected by the pandemic, the Government through the Ministry of Social Affairs is maximizing the Bantuan Sosial Tunai (BST) program. This research aims to examine the impact of the BST program on poverty of households that received BST program in Bogor Regency. This study used a quasi experimental by dividing households into the treatment group and the control group. The treatment group in this study were households that received the BST program. While the control group is households that do not receive the BST program. This study used primary data from 80 households in Karihkil Village, Ciseeng District, Bogor Regency. To get a control group that is similar to the treatment group, the study used the propensity score matching (PSM) method with the Probit model. The quantitative analysis method used in this research is the difference in difference (DID) method. The research show that the BST program does not have a significant impact on poverty of households in Bogor Regency.

Leading Sectors and Low Carbon Development: An Approach of Environmentally-Extended Input-Output Table

Theresa Novalia — 2024-06-30

Climate change issues have become a consideration in Indonesia due to the trade-off between economic development and environmental conservation. However, studies that incorporate environmental aspects into economic models are still limited. This study aims to develop the Environmentally-Extended Input-Output Table (EE-IOT) and determine the leading sectors in the Indonesian economy by considering greenhouse gas emissions as environmental pressures. EE-IOT is built in the form of Single-Region I-O. The result shows that the most direct CO₂ emissions are produced by productive sectors and the rest from household consumption. Based on the leading sector analysis, the manufacturing of Food and Beverages Products is the leading sector with low CO₂ emissions. Moreover, the sector with the highest output multiplier and relatively low CO₂ multiplier is Food and Beverage Services. Meanwhile, Animal Productions has the lowest CO₂ multiplier and high output multiplier. However, the development of these leading sectors cannot stand alone because it will have linkages with other sectors regarding inputs and outputs. After all, these supporting sectors will produce CO₂ emissions as well. Therefore, with a low-emission approach, the government needs additional efforts to encourage these supporting sectors, such as energy, transportation, agriculture, and forestry.

The Impact of Corruption on Productivity in The Middle-Income Trap Countries

Mutiara Virgia Leran Putri — 2024-06-30

This study aims to explore the influence of corruption on productivity in countries trapped in the Middle-Income Trap (MIT). The study utilizes panel data from 2003 to 2019 covering 50 countries confirmed to be trapped in the MIT based on various definitions in Pruchnik and Zowczak's (2017) research. Productivity is proxied by Total Factor Productivity (TFP), while the Control of Corruption index is used to depict the level of corruption. Findings indicate a significant negative impact of corruption on productivity in MIT-trapped countries, consistent with the "sand on the wheel" hypothesis. Additionally, based on estimated TFP growth values, China has the highest likelihood of escaping the MIT compared to other studied countries. This study also employs instrumental variable (IV) regression to anticipate endogeneity issues between corruption and productivity, yielding consistent results with previous findings. Therefore, addressing corruption should be a priority in a country's efforts to exit the MIT, as it has the potential to enhance the country's productivity.