THE CRUCIAL FACTORS AFFECTING POVERTY AND INEQUALITY IN ASEAN: A CASE STUDY OF CAMBODIA, MALAYSIA, INDONESIA, AND THAILAND

Sarah Ningtyas Rachman, Suharno Suharno, Lilis Siti Badriah

Abstract


Abstract. Poverty and inequality are problems that still have to be overcome by every state in the world, including the members of the Association of Southeast Asian Nations (ASEAN). The theoritical and empirical studies showed accelerating economic growth would have reduced poverty due to structural changes, even though it did not always happen. Meanwhile, Corruption had hampered the process of economic development. It increased inequality and poverty. This study is aimed to analyse the impact of economic growth and corruption partially and simultaneously to poverty and inequality and the most significant impact between economic growth and corruption toward poverty and inequality by using panel data regression through fixed effect model in 4 ASEAN Member Countries (Cambodia, Indonesia, Malaysia, and Thailand). Based on analysis process and collected data, economic growth and the level of corruption affected poverty rates and the level of inequality simultaneously. While partially, when economic growth rose, the poverty rated decreased but the level of inequality rose. On the other hand, when the level of corruption rose, the poverty rates also rose but the inequality decreased. There needs an agreement between stakeholders, so, institutions can be unchained from corruption without obstructing equity efforts and poverty alleviation.

Keywords: Poor Category, Access of Credit, Access of Education, Opportunities to Financial, Structural Changes Introduction

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References


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