The Impact Of Suramadu Bridge On Rural Poverty In Kabupaten Bangkalan, East Java, Indonesia
Karyadinata, C. H. K., Pudjihardjo, M., Manzilati, A. and Syafitri, W.
Economic and Bussines Faculty, Brawijaya University
Abstract
Poverty can be found in developing country especially in the rural area, including Kabupaten Bangkalan, East Java, Indonesia. One of the reasons is the limited mobility and accessibility. To overcome this problem, the government has built the Suramadu bridge which connects Kabupaten Bangkalan in Madura island with Kota Surabaya in Java Island so that the mobility and accessibility in both areas can be better. This study aims at measuring how big the impact of Suramadu bridge development on rural poverty in Kabupaten Bangkalan, using village potential data in 2007 and 2017 by Badan Pusat Statistik (Central Agency of Statistic). The dependent variable is the amount of poor population and the independent variable consists of physical capital, human capital, natural capital and financial capital which analysed by using OLS. Suramadu bridge has negative impact on poverty which means after Suramadu bridge operates, the poverty level in rural area is decreased. Before Suramadu bridge operates, it was only natural capital which gives impact on poverty while after Suramadu bridge operates, all of the independent variables give impact on the poverty reduction. The existence of Suramadu bridge can ease the government on issuing the poverty reduction policy in rural area.
Keywords: Poverty, Rural, Infrastructure, Impact
Topic: Economics, Finance, Banking, and Accounting