ANALYSIS OF SECTORAL ECONOMIC GROWTH ON POVERTY PROVINCE OF CENTRAL JAVA (2010-2015 PERIOD)

Abstract

Abstract. This study aims to analyze whether sectoral economic growth has a partial and simultaneous effect on poverty in the province of Central Java. In this case, the sectoral variables are divided into 3 groups, namely the primary sector, the secondary sector and, the tertiary sector. This research was conducted to find out which sector variables had the most influence in reducing poverty in Central Java for the period 2010-2015. Central Java is one of the Provinces in Indonesia which experiences a decrease in poverty every year (Time Series), but Cross Section poverty in several districts still varies, therefore it is necessary to have closer research on the area (District / City). Many studies have been carried out by previous researchers who stated that economic growth will have a negative impact on reducing poverty, but from previous studies only examined the variables of global economic growth. This research was conducted because the variables used were variables that had never been used by previous researchers, namely dividing economic growth into 3 parts sectoral groups to be more specific. The research methodology used is a panel data regression test.

Keywords: Poor Category, Economic Growth, Poverty, Primary Sector, Secondary Sector, Tertiary Sector