Detail buku

No BukuT.IPB.2010.25
AbstrakABSTRAK INDONESIA : Tidak ada ABSTRAK INGGRIS : AJID HAJIJI. Linkages between Economic Growth, Income Inequality, and Poverty Reduction in Riau Province 2002-2008. Under direction of D.S.PRIYARSONO and DEDI WALUJADI. Riau province is one of the richest province in Indonesia. In 2008, it gross domestic regional product (GDRP) was Rp. 276,4 trilion and its percapita income was Rp. 53.26 million. But it still has a lot of poor people, it was recorded 10.63 percent on poverty head count index. There are a lot of count index. There are a lot of studies on linkages between economic growth, income inequality,and poverty reduction during the last three decades. Most of those studies concluded that there is a positive relationship between economic growth and poverty reduction. However the relation between economic groeth and income inquality still not clear. This study aims to identify the linkages on economic growth, income inequality, and poverty reduction in Riau province. The methods used are descriptive analysis, panel data analysis, pro poor growth index, shapely decomposition, and variance decomposition. The data employed in this study is GDRP on regency level, household survey data and local government budget during 2002-2008. The result showed that economic growth has a positive effect on poverty reduction but it increased income inequality. It is also found that income inequality would reduce the effectiveness effect of economic growth on poverty reduction. According to pro poorness degree, economic development in Riau Province was already on the right track, its economic growth considered to be pro poor during 2002-2008 period. There were four economic sectors which significantly reduce poverty, namely: construction sector; trade; hotel and restaurant sector; transportation and communication sector and finance, rent and services sector. One of the suprising result is agricultural growth did not reduce poverty, its was quite daring common thought. It seems that agricultural growth was driven by plantation and foresty sub sector, which constitute the bigger part of agricultural sector. Big plantation and forestry company enjoyed the growth on those sub sector, so that it did not affect the well being of those who work in agricultural sector. The variation on poverty reduction mostly explained by growth component. Keywords: Economic growth, income inequality, poverty reduction, Riau Province.