"http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> Assets and poverty status dynamics in 5 main regions in Indonesia | Fitria | Economic Journal of Emerging Markets

Assets and poverty status dynamics in 5 main regions in Indonesia

Purna Fitria

Abstract


Comparing household expenditure and national poverty line, about 24.78% of households in Indonesia experienced poverty (expenditure below the poverty line) at least once within 14-year period. By utilizing the Ordered Logit Model, this study examines the determinants of household poverty status and analyses the relative effect of different household assets and characteristics on their poverty status. Employing three waves of Indonesia Family Life Survey (IFLS) consisting of household level data from the year of 2000, 2007 and 2014 and categorized households into five main regions based on their location. This study finds that assets (building, vehicle, jewellery, and savings) play important role in determining poverty status of households in Indonesia. Some demographic and socio-economic variables are confirmed to be statistically significant to poverty status in Indonesia. However, the determinants of poverty status vary within regions.


Keywords


Assets; Ordered Logit Model; Poverty Status.

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References


Afandi, A., Wahyuni, D., & Sriyana, J. (2017). Policies to eliminate poverty rate in Indonesia. International Journal of Economics and Financial Issues, 7(1), 435-441.

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Dartanto, T., & Nurkholis. (2013). The determinants of poverty dynamics in Indonesia: Evidence from panel data. Bulletin of Indonesian Economic Studies, 49(1), 61-84.

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DOI: http://dx.doi.org/10.20885/ejem.vol9.iss1.art11

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Economic Journal of Emerging Markets (EJEM)
ISSN 2086-3128 (print), ISSN 2502-180X (online)
Published by:
Center for Economics Studies, Faculty of Economics,
Universitas Islam Indonesia, Yogyakarta.

Creative Commons License
EJEM by http://journal.uii.ac.id/index.php/JEP/ is licensed under a Creative Commons Attribution 4.0 International License.