Spatial dependence and poverty factors: A study of Pantura Regions in East Java Province, Indonesia

Khoirul Ifa, Sebastiana Viphindrartin, Edy Santoso, Teguh Hadi Priyono

Article ID: 4195
Vol 8, Issue 7, 2024

VIEWS - 39 (Abstract) 12 (PDF)

Abstract


Poverty is still a problem in various countries in the world, so eradicating poverty and hunger by 2030 is the backbone of the goals of the sustainable development agenda. Poverty, which is the main goal of the Millennium Development Goals (MDGs), is again the main goal in the Sustainable Development Goals (SDGs). This research aims to determine the spatial dependence of poverty in the Pantura Region of East Java Province and to determine the influence of economic growth, education, unemployment, natural resources, health and accessibility on poverty in the Pantura Region of East Java Province. This research uses a quantitative approach, with data analysis methods using Moran’s index analysis, and spatial panel regression by selecting the best model from four models, namely the spatial autoregressive model (SAR), the spatial error model (SEM), the spatial Durbin model (SDM), and spatial autoregressive combined (SAC) model. The research results show that there is spatial interaction between coastal areas through endogenous and exogenous interactions between independent variables. Based on the selection of the best model, the spatial Durbin model (SDM) was selected for the Pantura Region. Economic growth has a negative effect on poverty. Education has a negative effect on poverty. Unemployment has no effect on poverty. Natural resources have a positive effect on poverty. Health has no effect. Accessibility has a negative effect on poverty in the Pantura Region. This research provides a new and important contribution in understanding the spatial patterns of poverty and the factors that influence it in the Pantura Region, which is a strategic and vulnerable area in East Java. This research also faces several limitations and challenges, such as data quality, model assumptions, and spatial validity. Future research could expand this analysis using more complete data, more flexible models, and more sophisticated techniques.

Keywords


spatial dependence; poverty; Pantura Regions

Full Text:

PDF


References


Acheampong, A. O., Erdiaw-Kwasie, M. O., & Abunyewah, M. (2021). Does energy accessibility improve human development? Evidence from energy-poor regions. Energy Economics, 96, 105165. https://doi.org/10.1016/j.eneco.2021.105165

Adeleye, B. N., Gershon, O., Ogundipe, A., et al. (2020). Comparative investigation of the growth-poverty-inequality trilemma in Sub-Saharan Africa and Latin American and Caribbean Countries. Heliyon, 6(12), e05631. https://doi.org/10.1016/j.heliyon.2020.e05631

Ahlström, A., Pilesjö, P., & Lindberg, J. (2011). Improved accessibility modeling and its relation to poverty—A case study in Southern Sri Lanka. Habitat International, 35(2), 316–326. https://doi.org/10.1016/j.habitatint.2010.11.002

Ahmad, M., Muslija, A., & Satrovic, E. (2021). Does economic prosperity lead to environmental sustainability in developing economies? Environmental Kuznets curve theory. Environmental Science and Pollution Research, 28(18), 22588–22601. https://doi.org/10.1007/s11356-020-12276-9

Akinyemi, F., & Bigirimana, F. (2012). A Spatial Analysis of Poverty in Kigali, Rwanda using indicators of household living standard. Rwanda Journal, 26(1). https://doi.org/10.4314/rj.v26i1.1

Anselin, L., & Hudak, S. (1992). Spatial econometrics in practice: A review of software options. Regional science and urban economics, 22(3), 509–536.

Anselin, L., & Rey, S. J. (2010). Perspectives on spatial data analysis. Cham: Springer.

Asare, P., & Barfi, R. (2021). The Impact of Covid-19 Pandemic on the Global Economy: Emphasis on Poverty Alleviation and Economic Growth. The Economics and Finance Letters, 8(1), 32–43. https://doi.org/10.18488/journal.29.2021.81.32.43

Auty, R. M., & Mikesell, R. F. (1998). Sustainable development in mineral economies. Clarendon Press.

Barham, V., Boadway, R., Marchand, M., & Pestieau, P. (1995). Education and the poverty trap. European Economic Review, 39(7), 1257–1275.

Bhattacharyya, A., Haldar, S. K., & Banerjee, S. (2021). Determinants of crime against women in India: A spatial panel data regression analysis. Millennial Asia, 1(1), 1–10.

Bloom, D. E., Canning, D., & Chan, K. (2006). Higher education and economic development in Africa (Vol. 102). Washington, DC: World Bank.

Bloom, D., & Canning, D. (2003). The Health and Poverty of Nations: From theory to practice. Journal of Human Development, 4(1), 47–71. https://doi.org/10.1080/1464988032000051487

Booth, A. (1998). The Indonesian economy in the nineteenth and twentieth centuries: A history of missed opportunities. Cham: Springer.

Bourguignon, F., & Chakravarty, S. R. (2003). The measurement of multidimensional poverty. The Journal of Economic Inequality, 1(1), 25–49.

Central Bureau of Statistics (BPS). (2021). East Java Province Statistic.

Chen, X., Pei, Z., Chen, A. L., et al. (2015). Spatial Distribution Patterns and Influencing Factors of Poverty—A Case Study on Key Country From National Contiguous Special Poverty-stricken Areas in China. Procedia Environmental Sciences, 26, 82–90. https://doi.org/10.1016/j.proenv.2015.05.005

Dahliah, D., & Nirwana Nur, A. (2021). The Influence of Unemployment, Human Development Index and Gross Domestic Product on Poverty level. Golden Ratio of Social Science and Education, 1(2), 95–108. https://doi.org/10.52970/grsse.v1i2.84

Dollar, D., Kleineberg, T., & Kraay, A. (2016). Growth still is good for the poor. European Economic Review, 81, 68–85. https://doi.org/10.1016/j.euroecorev.2015.05.008

Ehrlich, M. v., & Overman, H. G. (2020). Place-Based Policies and Spatial Disparities across European Cities. Journal of Economic Perspectives, 34(3), 128–149. https://doi.org/10.1257/jep.34.3.128

Elhorst, J. P. (2014). Spatial econometrics from cross-sectional data to spatial panels. Cham: Springer.

Fitrianto, A. R., & Samsuri, A. (2021). A Rural Community’s Livelihood Dynamic in the maintenance of a Mangrove Area as a Tourist Destination. (2021). ASEAN Journal of Community Engagement, 5(1). https://doi.org/10.7454/ajce.v5i1.1090

Fosu, A. K. (2017). Growth, inequality, and poverty reduction in developing countries: Recent global evidence. Research in Economics, 71(2), 306–336. https://doi.org/10.1016/j.rie.2016.05.005

Gao, P., Liu, S., Qi, W., et al. (2020). The Nexus between Poverty and the Environment: A Case Study of Lijiang, China. Sustainability, 12(3), 1066. https://doi.org/10.3390/su12031066

Garza-Rodriguez, J., Ayala-Diaz, G. A., Coronado-Saucedo, G. G., et al. (2021). Determinants of Poverty in Mexico: A Quantile Regression Analysis. Economies, 9(2), 60. https://doi.org/10.3390/economies9020060

Gray, L. C., & Moseley, W. G. (2005). A geographical perspective on poverty–environment interactions. The Geographical Journal, 171(1), 9–23. Portico. https://doi.org/10.1111/j.1475-4959.2005.00146.x

Gupta, I., & Mitra, A. (2004). Economic Growth, Health and Poverty: An Exploratory Study for India. Development Policy Review, 22(2), 193–206. Portico. https://doi.org/10.1111/j.1467-7679.2004.00245.x

Handiani, D. N., Heriati, A., & Gunawan, W. A. (2022). Comparison of coastal vulnerability assessment for Subang Regency in North Coast West Java-Indonesia. Geomatics, Natural Hazards and Risk, 13(1), 1178–1206. https://doi.org/10.1080/19475705.2022.2066573

Hofmarcher, T. (2021). The effect of education on poverty: A European perspective. Economics of Education Review, 83, 102124. https://doi.org/10.1016/j.econedurev.2021.102124

Islamiah, N., Rahmatia, R., Paddu, H., et al. (2021). Direct and Indirect Effect of Macro Economic Factors in the West of Indonesia. Golden Ratio of Social Science and Education, 1(1), 13–24. https://doi.org/10.52970/grsse.v1i1.107

Jachimowicz, J. M., Szaszi, B., Lukas, M., et al. (2020). Higher economic inequality intensifies the financial hardship of people living in poverty by fraying the community buffer. Nature Human Behaviour, 4(7), 702–712. https://doi.org/10.1038/s41562-020-0849-2

Jr Adams, R. H. (2004). Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty. World Development, 32(12), 1989–2014. https://doi.org/10.1016/j.worlddev.2004.08.006

Kassa, G., Teferi, B., & Delelegn, N. (2018). The Poverty—Environment Nexus in Developing Countries: Evidence from Ethiopia: A Systematic Review. Asian Journal of Agricultural Extension, Economics & Sociology, 24(3), 1–13. https://doi.org/10.9734/ajaees/2018/39310

Khoa, B. T., Hung, B. P., & Brahmi, M. H. (2023). Qualitative research in social sciences: data collection, data analysis and report writing. International Journal of Public Sector Performance Management, 12(1/2), 187–209. https://doi.org/10.1504/ijpspm.2023.132247

Kuznets, S. (1955). American Economic Association. The American Economic Review, 45(1), 1–28.

Kwigizile, E., Chilongola, J., & Msuya, J. (2011). The impact of road accessibility of rural villages on recognition of poverty reduction opportunities. African Journal of Marketing Management, 3(2), 22–31.

Liang, Y., Li, S., Zeng, J., et al. (2022). Examining the impact of multidimensional accessibility on regional poverty in Laos. Applied Geography, 148, 102789. https://doi.org/10.1016/j.apgeog.2022.102789

Liu, M., Ge, Y., Hu, S., et al. (2022). The spatial–temporal variation of poverty determinants. Spatial Statistics, 50, 100631. https://doi.org/10.1016/j.spasta.2022.100631

Liu, W., Li, J., & Zhao, R. (2020). Rural Public Expenditure and Poverty Alleviation in China: A Spatial Econometric Analysis. Journal of Agricultural Science, 12(6), 46. https://doi.org/10.5539/jas.v12n6p46

Malerba, D. (2020). Poverty alleviation and local environmental degradation: An empirical analysis in Colombia. World Development, 127, 104776. https://doi.org/10.1016/j.worlddev.2019.104776

Massaquoi, H., Atuhaire, C., Chinkonono, G. S., et al. (2021). Exploring health-seeking behavior among adolescent mothers during the Ebola epidemic in Western rural district of Freetown, Sierra Leone. BMC Pregnancy and Childbirth, 21(1). https://doi.org/10.1186/s12884-020-03521-7

Mathias, K., Rawat, M., Philip, S., et al. (2020). “We’ve got through hard times before”: acute mental distress and coping among disadvantaged groups during COVID-19 lockdown in North India—A qualitative study. International Journal for Equity in Health, 19(1). https://doi.org/10.1186/s12939-020-01345-7

Medeiros, V., Ribeiro, R. S. M., & Amaral, P. V. M. do. (2021). Infrastructure and household poverty in Brazil: A regional approach using multilevel models. World Development, 137, 105118. https://doi.org/10.1016/j.worlddev.2020.105118

Mohajan, H. K. (2020). Quantitative Research: A Successful Investigation in Natural and Social Sciences. Journal of Economic Development, Environment and People, 9(4). https://doi.org/10.26458/jedep.v9i4.679

Novignon, J., Nonvignon, J., Mussa, R., et al. (2012). Health and vulnerability to poverty in Ghana: evidence from the Ghana Living Standards Survey Round 5. Health Economics Review, 2(1). https://doi.org/10.1186/2191-1991-2-11

Nurkse, R. (1971). The theory of development and the idea of balanced growth Developing the underdeveloped countries. Cham: Springer. pp. 115–128.

Owusu, M., Kuffer, M., Belgiu, M., et al. (2021). Towards user-driven earth observation-based slum mapping. Computers, Environment and Urban Systems, 89, 101681. https://doi.org/10.1016/j.compenvurbsys.2021.101681

Perera, L. D. H., & Lee, G. H. Y. (2013). Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia? Journal of Asian Economics, 27, 71–86. https://doi.org/10.1016/j.asieco.2013.06.002

Priyanto, E., Widarni, E. L., & Bawono, S. (2022). The Effect of Internet Inclusion on Financial Inclusion in P2P Lending in Indonesia Based on Human Capital Point of View. Modeling Economic Growth in Contemporary Indonesia, 107–121. https://doi.org/10.1108/978-1-80262-431-120221008

Quy, N. H. (2016). Relationship between Economic Growth, Unemployment and Poverty: Analysis at Provincial Level in Vietnam. International Journal of Economics and Finance, 8(12), 113. https://doi.org/10.5539/ijef.v8n12p113

Rahayu, A. S., Nur Hasanah, L. A., & Pratiwi, L. S. (2021). The Role of Financial Literacy in Reducing Poverty: Experience from Indonesia. Dinamika Ekonomi, 12(2), 133–141. https://doi.org/10.29313/de.v12i2.7796

Sasongko, B., Bawono, S., & Prabowo, B. H. (2021). The Economic Performance of China in Trade War: The Case Study of Three Global Economic Crises in 1997–2020. International Symposia in Economic Theory and Econometrics, 1–11. https://doi.org/10.1108/s1571-03862021000029b022

Schleicher, J., Schaafsma, M., Burgess, N. D., et al. (2018). Poorer without It? The Neglected Role of the Natural Environment in Poverty and Wellbeing. Sustainable Development, 26(1), 83–98. Portico. https://doi.org/10.1002/sd.1692

Sugasawa, T. (2019). Accessibility to the nearest urban metropolitan area and rural poverty in Japan. DSSR Discussion Papers, 94(1), 1–30.

Tilak, J. B. G. (2007). Post-elementary education, poverty and development in India. International Journal of Educational Development, 27(4), 435–445. https://doi.org/10.1016/j.ijedudev.2006.09.018

Triatmanto, B., Bawono, S., & Wahyuni, N. (2023). The contribution and influence of total external debt, FDI, and HCI on economic growth in Indonesia, Thailand, Vietnam, and Philippines. Research in Globalization, 7, 100163. https://doi.org/10.1016/j.resglo.2023.100163

Ucha, C. (2010). Poverty in Nigeria: Some dimensions and contributing factors. Global Majority E-Journal, 1(1), 46–56.

Wang, C., Wang, Y., Fang, H., et al. (2020). Determinants of Rural Poverty in Remote Mountains of Southeast China from the Household Perspective. Social Indicators Research, 150(3), 793–810. https://doi.org/10.1007/s11205-020-02348-1

Warr, P. (2010). Roads and poverty in rural Laos: an econometric analysis. Pacific Economic Review, 15(1), 152–169. https://doi.org/10.1111/j.1468-0106.2009.00494.x

Weziak-Bialowolska, D. (2016). Spatial Variation in EU Poverty with Respect to Health, Education and Living Standards. Social Indicators Research, 125(2), 451–479. https://doi.org/10.1007/s11205-014-0848-7

Widarni, E. L., & Bawono, S. (2021). The Comparation of Foreign Financial Investment and Human Investment Effect on Economic in Indonesia Base on Macro Economic Point of View. Studies of Applied Economics, 39(12). https://doi.org/10.25115/eea.v39i12.6006

Widarni, E. L., & Bawono, S. (2023). Investigating the Role of Education in Stability of Work Participation in Economic Shocks from the Asian Financial Crisis to the Covid 19 Pandemic in Indonesia. International Journal of Professional Business Review, 8(1), e0811. https://doi.org/10.26668/businessreview/2023.v8i1.811

Wright, G., & Czelusta, J. (2004). Why Economies Slow: The Myth of the Resource Curse. Challenge, 47(2), 6–38. https://doi.org/10.1080/05775132.2004.11034243

Xue, J., & Zhong, W. (2003). Unemployment, Poverty and Income Disparity in Urban China. Asian Economic Journal, 17(4), 383–405. https://doi.org/10.1111/j.1467-8381.2003.00192.x

Yaqoob, N., Ali, S. A., Kannaiah, D., et al. (2022). The effects of Agriculture Productivity, Land Intensification, on Sustainable Economic Growth: A panel analysis from Bangladesh, India, and Pakistan Economies. Environmental Science and Pollution Research, 30(55), 116440–116448. https://doi.org/10.1007/s11356-021-18471-6

Zhang, H. (2014). The poverty trap of education: Education–poverty connections in Western China. International Journal of Educational Development, 38, 47–58. https://doi.org/10.1016/j.ijedudev.2014.05.003

Zhao, P., & Xu, J. (2024). Analysis of Residents’ Livelihoods in Transformed Shantytowns: A Case Study of a Resource-Based City in China. Sustainability, 16(4), 1587. https://doi.org/10.3390/su16041587

Zhou, L., & Xiong, L. Y. (2018). Natural topographic controls on the spatial distribution of poverty-stricken counties in China. Applied Geography, 90, 282–292. https://doi.org/10.1016/j.apgeog.2017.10.006

Zhou, Y., & Liu, Y. (2022). The geography of poverty: Review and research prospects. Journal of Rural Studies, 93, 408–416. https://doi.org/10.1016/j.jrurstud.2019.01.008




DOI: https://doi.org/10.24294/jipd.v8i7.4195

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Khoirul Ifa, Sebastiana Viphindrartin, Edy Santoso, Teguh Hadi Priyono

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.