The Effect of Electricity Development in Indonesia on Poverty and Income Inequality
Several provinces in Indonesia are still experiencing a crisis and the distribution of electricity is not evenly distributed. This is thought to be one of the causes of poverty and income inequality in several regions. Therefore, research on this matter is very important because electricity is a bas...
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| Format: | UMS Journal (OJS) |
| Language: | eng |
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Muhammadiyah University Press
2021
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| Online Access: | https://journals.ums.ac.id/index.php/JEP/article/view/12076 |
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| author | Jayanthi, Ria |
| author_facet | Jayanthi, Ria |
| author_sort | Jayanthi, Ria |
| collection | OJS |
| description | Several provinces in Indonesia are still experiencing a crisis and the distribution of electricity is not evenly distributed. This is thought to be one of the causes of poverty and income inequality in several regions. Therefore, research on this matter is very important because electricity is a basic infrastructure whichis an important aspect in encouraging community economic activity as well as a tool that helps alleviate poverty and income inequality. This study used a simultaneous panel model, analyzed using the Two-Stage Least Square (TSLS) method, and used data from 31 provinces in Indonesia in 2010-2015. The results showed that electrification had a positive impact on economic growth. On the other hand, economic growth has a negative impact on poverty levels. However, an increase in electrification is actually indicated by an increase in income inequality in this study. So it can be concluded that economic growth is not enjoyed equally by people with low electrification ratios, but only by certain groups. The implication is that policies implemented to alleviate poverty and income inequality through increasing economic growth must pay attention to equal distribution of electricity, especially in areas based on labor-intensive industries, so that they are also able to attract investment and increase access to education. |
| format | UMS Journal (OJS) |
| id | oai:ojs2.journals.ums.ac.id:article-12076 |
| institution | Universitas Muhammadiyah Surakarta |
| language | eng |
| publishDate | 2021 |
| publisher | Muhammadiyah University Press |
| record_format | ojs |
| spelling | oai:ojs2.journals.ums.ac.id:article-12076 The Effect of Electricity Development in Indonesia on Poverty and Income Inequality Jayanthi, Ria Electricity, Income Inequality, Indonesia, Poverty, Simultaneous Panel H54; J2; J31; O11; O47 Several provinces in Indonesia are still experiencing a crisis and the distribution of electricity is not evenly distributed. This is thought to be one of the causes of poverty and income inequality in several regions. Therefore, research on this matter is very important because electricity is a basic infrastructure whichis an important aspect in encouraging community economic activity as well as a tool that helps alleviate poverty and income inequality. This study used a simultaneous panel model, analyzed using the Two-Stage Least Square (TSLS) method, and used data from 31 provinces in Indonesia in 2010-2015. The results showed that electrification had a positive impact on economic growth. On the other hand, economic growth has a negative impact on poverty levels. However, an increase in electrification is actually indicated by an increase in income inequality in this study. So it can be concluded that economic growth is not enjoyed equally by people with low electrification ratios, but only by certain groups. The implication is that policies implemented to alleviate poverty and income inequality through increasing economic growth must pay attention to equal distribution of electricity, especially in areas based on labor-intensive industries, so that they are also able to attract investment and increase access to education. Muhammadiyah University Press Pusat Penelitian Kebijakan dan Manajemen Ilmu Pengetahuan, Teknologi dan Inovasi - LIPI 2021-07-27 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://journals.ums.ac.id/index.php/JEP/article/view/12076 10.23917/jep.v22i1.12076 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan; Vol 22, No 1 (2021): JEP 2021; 104-116 2460-9331 1411-6081 eng https://journals.ums.ac.id/index.php/JEP/article/view/12076/6788 https://journals.ums.ac.id/index.php/JEP/article/downloadSuppFile/12076/2254 https://journals.ums.ac.id/index.php/JEP/article/downloadSuppFile/12076/2255 https://journals.ums.ac.id/index.php/JEP/article/downloadSuppFile/12076/2256 Copyright (c) 2021 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan https://creativecommons.org/licenses/by/4.0 |
| spellingShingle | Electricity, Income Inequality, Indonesia, Poverty, Simultaneous Panel H54; J2; J31; O11; O47 Jayanthi, Ria The Effect of Electricity Development in Indonesia on Poverty and Income Inequality |
| title | The Effect of Electricity Development in Indonesia on Poverty and Income Inequality |
| title_full | The Effect of Electricity Development in Indonesia on Poverty and Income Inequality |
| title_fullStr | The Effect of Electricity Development in Indonesia on Poverty and Income Inequality |
| title_full_unstemmed | The Effect of Electricity Development in Indonesia on Poverty and Income Inequality |
| title_short | The Effect of Electricity Development in Indonesia on Poverty and Income Inequality |
| title_sort | effect of electricity development in indonesia on poverty and income inequality |
| topic | Electricity, Income Inequality, Indonesia, Poverty, Simultaneous Panel H54; J2; J31; O11; O47 |
| topic_facet | Electricity, Income Inequality, Indonesia, Poverty, Simultaneous Panel H54; J2; J31; O11; O47 |
| url | https://journals.ums.ac.id/index.php/JEP/article/view/12076 |
| work_keys_str_mv | AT jayanthiria theeffectofelectricitydevelopmentinindonesiaonpovertyandincomeinequality AT jayanthiria effectofelectricitydevelopmentinindonesiaonpovertyandincomeinequality |