Who Are the Poor in Rural and Coastal Sumatra? A Monetary and Multidimensional Inquiry

barika barika(1*), Ririn Nopiah(2), Romi Gunawan(3), Aan Zuyanto(4), Iin Inayati(5),

(1) University of Bengkulu, Indonesia
(2) University of Bengkulu, Indonesia
(3) University of Bengkulu, Indonesia
(4) University og Muhammadiyah Bengkulu, Indonesia
(5) Central Berau of Statistic, Indonesia
(*) Corresponding Author

Abstract


This study analyses the determinants of poverty in rural and coastal areas using a microdata approach, which provides a more in-depth analysis of individual and household characteristics. This study using secondary data sourced from the Central Statistics Agency (BPS), which is microdata at the individual and household levels. The data consists of two sources, namely the National Socio-Economic Survey (SUSENAS) and the Village Potential (PODES) for the 2023 period. The unit of analysis used in this study is households with a population aged 15 years and above who are poor and live on the rural coast of the island of Sumatra. Analysis of the influence of household socio-economic characteristics on multidimensional poverty using the logistics multinomial regression method. This study found that social, economic, demographic, and infrastructure variables determine the level of household poverty in coastal Sumatra. It has been proven that education increases the likelihood of households escaping poverty while reducing its impact, both in monetary and multidimensional aspects. In addition, access to credit and Health Insurance (Askes) offers substantial social and economic capital that improves household well-being. Access to technology is also a key factor in improving the well-being of coastal communities, highlighting the value of digitalization in improving the economy of low-income households

Keywords


Poverty, multidimensional, rural, coastal area, Sumatera.

References


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

Agyeman-Boaten, S. Y. (2024). Determinants of poverty in rural cocoa farming communities in Ghana: unidimensional and multidimensional analysis. Cogent Economics and Finance, 12(1). https://doi.org/10.1080/23322039.2024.2397808

Alkire, S., & Foster, J. (2011). Counting and multidimensional poverty measurement. Journal of Public Economics, 95(7–8), 476–487. https://doi.org/10.1016/j.jpubeco.2010.11.006

Alkire, S., & Santos, M. E. (2010). Acute Multidimensional Poverty: a New Index for Developing Countries. In SSRN Electronic Journal.

Alkire, S., & Seth, S. (2015). Multidimensional Poverty Reduction in India between 1999 and 2006: Where and How? World Development, 72, 93–108. https://doi.org/10.1016/j.worlddev.2015.02.009

Andriesse, E. (2018). Primary Sector Value Chains, Poverty Reduction, And Rural Development Challenges In The Philippines. Geographical Review, 108(3), 345–366. https://doi.org/10.1111/gere.12287

Asher, S., & Novosad, P. (2018). Rural roads and local economic development. In Policy Research Working Paper (The World Bank). https://doi.org/10.1257/aer.20180268

Atake, E. H. (2018). Health shocks in sub-Saharan Africa: Are the poor and uninsured households more vulnerable? Health Economics Review, 8(1). https://doi.org/10.1186/s13561-018-0210-x

Behrman, J. R., Schott, W., Duc, L. T., Mani, S., Fernald, L. C. H., Crookston, B. T., Stein, A. D., & Dearden, K. (2017). Intergenerational transmission of poverty and inequality: Parental resources and schooling attainment and Children’s Human Capital in Ethiopia, India, Peru, and Vietnam. Economic Development and Cultural Change, 65(4), 657–697. https://doi.org/10.1086/691971

Brülle, J., Gangl, M., Levanon, A., & Saburov, E. (2019). Changing labour market risks in the service economy: Low wages, part-time employment and the trend in working poverty risks in Germany. Journal of European Social Policy, 29(1), 115–129. https://doi.org/10.1177/0958928718779482

Chan, T. W. (2022). The dynamics of relative poverty in China in a comparative perspective. Chinese Journal of Sociology, 8(1), 29–51. https://doi.org/10.1177/2057150X211068543

Damaske, S., Bratter, J. L., & Frech, A. (2017). Single Mother Families and Employment, Race, and Poverty in Changing Economic Times. Social Science Research, 62, 120–133. https://doi.org/10.1016/j.ssresearch.2016.08.008.Single

D’Attoma, I., & Matteucci, M. (2024). Multidimensional poverty: an analysis of definitions, measurement tools, applications and their evolution over time through a systematic review of the literature up to 2019. In Quality and Quantity (Vol. 58, Issue 4). Springer Netherlands. https://doi.org/10.1007/s11135-023-01792-8

Dawood, T. C., Pratama, H., Masbar, R., & Effendi, R. (2019). Does financial inclusion alleviate household poverty? Empirical evidence from Indonesia. Economics and Sociology, 12(2), 235–252. https://doi.org/10.14254/2071-789X.2019/12-2/14

Ernawati, & Tajuddin. (2022). The Impact of The Covid-19 Pandemic on Poverty Gap in Indonesia. Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021), 201(Icosiams 2021), 38–42. https://doi.org/10.2991/aebmr.k.211225.007

Feriyanto, N., El Aiyubbi, D., & Nurdany, A. (2020). The Impact Of Unemployment, Minimum Wage, And Real Gross Regional Domestic Product On Poverty Reduction In Provinces Of Indonesia. Asian Economic and Financial Review, 10(10), 1088–1099. https://doi.org/10.18488/journal.aefr.2020.1010.1088.1099

Gamboa, G., Mingorría, S., & Scheidel, A. (2020). The meaning of poverty matters: Trade-offs in poverty reduction programmes. Ecological Economics, 169(May 2019), 106450. https://doi.org/10.1016/j.ecolecon.2019.106450

Garcia-Diaz, R., & Prudencio, D. (2016). A Shapley Decomposition of Multidimensional Chronic Poverty in Argentina. Bulletin of Economic Research, 69(1), 1–19. https://doi.org/10.1111/boer.12082

Haitao, W. S. D. G. W. (2015). Income inequality and rural poverty in China : focusing on the role of government transfer payments. China Agricultural Economic Review, 7(1).

Hallegatte, S., Vogt-Schilb, A., Rozenberg, J., Bangalore, M., & Beaudet, C. (2020). From Poverty to Disaster and Back: a Review of the Literature. Economics of Disasters and Climate Change, 4(1), 223–247. https://doi.org/10.1007/s41885-020-00060-5

Heitzmann, K., & Pennerstorfer, A. (2024). Large families and poverty in Austria: What explains their disproportionate risk of experiencing income poverty? International Journal of Social Welfare, 34(1), 1–12. https://doi.org/10.1111/ijsw.12667

Hick, R., & Lanau, A. (2018). Moving in and out of in-work poverty in the UK: An analysis of transitions, trajectories and trigger events. Journal of Social Policy, 47(4), 661–682. https://doi.org/10.1017/S0047279418000028

Http://www.bps.go.id. (2023). Profil Kemiskinan di Indonesia Maret 2023. Badan Pusat Statistik, 47, 1–16.

Kakwani, N., & Son, H. (2022). Economic Inequality and Poverty. Oxford University Press. https://doi.org/10.1093/oso/9780198852841.001.0001

Kwadzo, M. (2015). Choosing Concepts and Measurements of Poverty: A Comparison of Three Major Poverty Approaches. Journal of Poverty, 19(4), 409–423. https://doi.org/10.1080/10875549.2015.1015067

Kyne, D., & Kyei, D. (2024). Understanding Associations between Disasters and Sustainability, Resilience, and Poverty: An Empirical Study of the Last Two Decades. Sustainability (Switzerland), 16(17). https://doi.org/10.3390/su16177416

Li, T., Cao, X., Qiu, M., & Li, Y. (2020). Exploring the spatial determinants of rural poverty in the interprovincial border areas of the loess plateau in China: A village-level analysis using geographically weighted regression. ISPRS International Journal of Geo-Information, 9(6). https://doi.org/10.3390/ijgi9060345

Li, Y., Jin, Q., & Li, A. (2022). Understanding the multidimensional poverty in South Asia. Journal of Geographical Sciences, 32(10), 2053–2068. https://doi.org/10.1007/s11442-022-2036-z

Liao, P., Zhang, X., & Zhang, W. (2022). Endogenous health risks, poverty traps, and the roles of health insurance in poverty alleviation. Health Economics Review, 12(1), 1–15. https://doi.org/10.1186/s13561-022-00370-2

Ma, L., Ding, T., & Zhang, J. (2024). Research on the Capability to Prevent Returning to Poverty and Its Enhancement Path for the Ecologically Fragile Areas: A Case Study of Enshi Prefecture. Sustainability (Switzerland), 16(12). https://doi.org/10.3390/su16124986

Marrero, G. A., & Servén, L. (2022). Growth, inequality and poverty: a robust relationship? Empirical Economics, 63(2), 725–791. https://doi.org/10.1007/s00181-021-02152-x

Meseret Chanie, A., Yuan Pei, K., Lei, Z., & Bao Zhong, C. (2018). Rural Development Policy: What does Ethiopia Need to Ascertain from China Rural Development Policy to Eradicate Rural Poverty? American Journal of Rural Development, 6(3), 79–93. https://doi.org/10.12691/ajrd-6-3-3

Milliano, M. de, & Plavgo, I. (2019). Analysing Multidimendional Child Poverty in Sub-Saharan Africa: Findings Using an International Comparative Approach. Physiology & Behavior, 11(3), 805–833. https://doi.org/10.1007/s12187-017-9488-1.ANALYSING

Mohaqeqi Kamal, S. H., Basakha, M., & Alkire, S. (2024). Multidimensional poverty index: A multilevel analysis of deprivation among Iranian older adults. Ageing and Society, 44(2), 337–356. https://doi.org/10.1017/S0144686X2200023X

Ndirangu, G. (2024). Investment in Health Care and Its Impact on Poverty Reduction. International Journal of Developing Country Studies, 6(2), 13–25. https://doi.org/10.47941/ijdcs.2167

Nguyen, D. T., Sen, L. T. H., Hoang, H. G., Tran, T. N., Tran, N. A. T., & Mazancova, J. (2023). Insight into the Multidimensional Poverty of the Mountainous Ethnic Minorities in Central Vietnam. Social Sciences, 12(6). https://doi.org/10.3390/socsci12060331

Ogutu, S. O., & Qaim, M. (2018). Commercialization of Small Farm Sector an Multidimensional Poverty. In GlobalFood Discussion Paper 117, University of Goettingen. http://www.uni- goettingen.de/de/213486.html.

Padli, J., Ahmat, N., & Nawawi, M. N. (2019). The impact of natural disasters, technological change and education on poverty rate: Evidence from developing countries. Jurnal Ekonomi Malaysia, 53(2), 21–28. https://doi.org/10.17576/JEM-2019-5302-2

Park, E. Y., Nam, S. J., & Park, S. H. (2017). Income Patterns of Households Including Individuals with Intellectual Disabilities According to Poverty Dynamics. Journal of Policy and Practice in Intellectual Disabilities, 14(2), 108–117. https://doi.org/10.1111/jppi.12166

Ratri, T. D., & Sholeh, M. (2019). The Influence of Education, Health and the Internet on Poverty in Indonesia. Advances in Social Science, Education and Humanities Research, 323(ICoSSCE 2018), 158–163. https://doi.org/10.2991/icossce-icsmc-18.2019.31

Rizal, R. N., Hartono, D., Dartanto, T., & Gultom, Y. M. L. (2024). Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in Indonesia. Heliyon, 10(3), e24135. https://doi.org/10.1016/j.heliyon.2024.e24135

Salam, A., Pratomo, D. S., & Saputra, P. M. A. (2022). Analisis kemiskinan pada rumah tangga di Jawa Timur melalui pendekatan multidimensi dan moneter. Jurnal Kependudukan Indonesia, 16(2), 127. https://doi.org/10.14203/jki.v16i2.480

Salam, A. ;, & Suwandana, E. ; (2024). Bekerja Tetapi Tetap Miskin, Apakah Permasalahan Kemiskinan Multidimensi? Jurnal Ekonomi Dan Pembangunan Indonesia, 24(1), 1–1. https://doi.org/10.21002/jepi.2024.06

Salecker, L., Ahmadov, A. K., & Karimli, L. (2020). Contrasting Monetary and Multidimensional Poverty Measures in a Low-Income Sub-Saharan African Country. Social Indicators Research, 151(2), 547–574. https://doi.org/10.1007/s11205-020-02382-z

Septa, D., Acharya, R., & Dhanora, Madan. (2024). Determinants of multidimensional poverty: a study of the rural district of madhya pradesh. Journal of Development Policy and Practice, 10(2), 145–170. https://doi.org/10.1177/24551333241285537

Shen, Y. (2022). Rural Poverty, Growth, and Inequality in China. In Rural Poverty, Growth, and Inequality in China. Springer International Publishing. https://doi.org/10.1007/978-981-16-9655-8

Sinha, M., & Ramadas, S. (2021). Correlates of multidimensional poverty in rural Bihar. Agricultural Economics Research Review, 34(conf), 51–57. https://doi.org/10.5958/0974-0279.2021.00014.8

Stewart, K., Patrick, R., & Reeves, A. (2025). A time of need: Exploring the changing poverty risk facing larger families in the UK. Journal of Social Policy, 54(1), 75–99. https://doi.org/10.1017/S0047279422000952

Wang, J., Xiao, H., & Liu, X. (2023). The Impact of Social Capital on Multidimensional Poverty of Rural Households in China. International Journal of Environmental Research and Public Health, 20(1). https://doi.org/10.3390/ijerph20010217

Wang, Q., Shu, L., & Lu, X. (2023). Dynamics of multidimensional poverty and its determinants among the middle-aged and older adults in China. Humanities and Social Sciences Communications, 10(1), 1–9. https://doi.org/10.1057/s41599-023-01601-5

Wei, W., Sarker, T., Żukiewicz-Sobczak, W., Roy, R., Monirul Alam, G. M., Rabbany, M. G., Hossain, M. S., & Aziz, N. (2021). The influence of women’s empowerment on poverty reduction in the rural areas of Bangladesh: Focus on health, education and living standard. International Journal of Environmental Research and Public Health, 18(13), 1–18. https://doi.org/10.3390/ijerph18136909

Witkin, N. (2022). Is Stable Marriage Associated with Greater Wealth Among Low-Income Households?: Evidence from the Survey of Consumer Finances. 0–25.

Wolff, J. (2020). Beyond Poverty. In Dimension of Poverty (pp. 23–39). https://doi.org/10.1007/978-3-030-31711-9_2

Zenebe Ede’o, A., Ketebo, J. H., & Chala, B. W. (2020). Feminization of multidimensional urban poverty in sub-Saharan Africa: Evidence from selected countries. African Development Review, 32(4), 632–644. https://doi.org/10.1111/1467-8268.12466

Zhang, M., & Wu, M. (2024). The impact of rural health insurance on vulnerability to chronic poverty among rural residents in China: analysis using Probit and IVprobit models. Frontiers in Public Health, 12(October), 1–12. https://doi.org/10.3389/fpubh.2024.1481019

Zhang, Y., & Huai, J. (2023). A Case Study of Farmers’ Behavioral Motivation Mechanisms to Crack the Fractal Multidimensional Relative Poverty Trap in Shaanxi, China. Agriculture (Switzerland), 13(11). https://doi.org/10.3390/agriculture13112043

Zia, I. Z., & Prasetyo, P. E. (2018). Analysis of Financial Inclusion Toward Poverty and Income Inequality. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 19(1), 114. https://doi.org/10.23917/jep.v19i1.5879




DOI: http://dx.doi.org/10.33019/ijbe.v10i2.1345

Article Metrics

Abstract view : 0 times

Refbacks

  • There are currently no refbacks.


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

Creative Commons License

Integrated Journal of Business and Economics is licensed under a Creative Commons Attribution 4.0 International License.