Determinant of Poverty in the East Kalimantan Province
Eny Rochaida
Mulawarman University
Economics Department, Faculty of Economics and Business, Samarinda, Indonesia
enyrochaida[at]yahoo.com
Abstract
Poverty is always interesting and challenging at the same time to discuss from any aspects of development. It can happen around the world and across nation as well. This situation can be seen at developed and developing countries from any indicators, such as in Indonesia. The East Kalimantan Province as the one of rich province in Indonesia still faces poverty problems too. Regarding to the Regional Income performance that the poverty problems in this province quite low; however the number increase slightly up to 6% from 2014 until now. This study aims to describe poverty causes in the East Kalimantan Province and to determine the effect of the Gross Regional Domestic Product (GRDP) and unemployment rate on poverty rate. This study uses quantitative approach and secondary data from 2010 to 2017. The data analysis is using Ordinary Least Square (OLS). The results show that GRDP has a negative coefficient effect to poverty, while the unemployment rate has a positive coefficient effect to poverty in the East Kalimantan Province. Whereas, all the independent variables has not significant effect to poverty; it means poverty in the East Kalimantan Province causes by other variables.
Keywords: poverty, gross domestic product, unemployment rate
Topic: Economics