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ARE basic Infrastructures have Good Impact on Poverty Reduction? An Indonesian Panel Data Analysis


Wasifah Hanim, Sugiartiningsih and Ghulam Muhammad Qamri
Abstract

Poverty is multidimensional. A poor person is not only as a result of insufficient income for minimum physical needs, but also due to the lack of accessibility to productive resources. This paper empirically investigated the impact of water and sanitation infrastructure on poverty reduction. Analysis has been done for 6 years during the period 2011-2016. The research analysed the relationship between dependent variable and independent variable, as the dependent variable was poverty rate and the independent variables were infrastructures consisted of water, sanitation, and electricity. Each of variable is represented by proportion of the household for consuming water and sanitation, and electricity. Other independent variables are unemployment rate, economic growth, and mean years schooling. The relationship between dependent variable and independent variable was analysed using regression of panel data. Empirical results of the paper showed that the enhancement in consuming water and sanitation and electricity infrastructure have positive impact on reducing poverty rate.

Volume 11 | 03-Special Issue

Pages: 566-573