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Jurnal Ekonomi
##issue.vol## 16, ##issue.no## 1 (2011): Ekonomi No. 1 Vol. 16 2011
HUBUNGAN DIANTARA PERTUMBUHAN EKONOMI DAN PENURUNAN KEMISKINAN
Article Info   ABSTRACT
Published date:
12 Apr 2012
 
This paper examines relationship between economic growth and reduction in the incidence of poverty, using both empirical and regression analysis over the last three decades. Overall, this paper indicates that correlation between the economic growth and the elimination in the incidence of poverty is not solely determined by the level (quantity), but also by the pattern of (quality) the economic growth. This paper also shows that the economic growth on the basis of tradable sector is more significant than those on the basis of non-tradable sector in reducing poverty. Within tradable sector, agriculture and manufacturing needs to get serious attention to be developed optimally as they have a better statistical ability than the mining sector (and other economic sectors) in reducing poverty. It is therefore recommended that the development of agriculture and manufacturing sectors should be integrated through the development of agricultural-based industries. To support the development of agricultural-based industries, the government should take several important actions: including reducing a high cost of doing business that arises because of lack of infrastructure, cumbersome bureaucracy, poor law enforcement, and corruption; encouraging local governments to identify several important agricultural products that could be manufactured competitively; and providing tax incentives and encouraging banking industry to provide more loans to industries that can process local agricultural products.
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