Revisiting the impact of consumption growth and inequality on poverty in Indonesia during decentralisation

This paper analyses the consumption growth elasticity and inequality elasticity of poverty in Indonesia with a particular focus on the decentralisation period. Using provincial panel data, the paper finds that there were more pronounced effects of income inequality on regional poverty rates during l...

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Main Authors: Miranti, R., Duncan, Alan, Cassells, R.
Format: Journal Article
Published: Routledge 2014
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/13201
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author Miranti, R.
Duncan, Alan
Cassells, R.
author_facet Miranti, R.
Duncan, Alan
Cassells, R.
author_sort Miranti, R.
building Curtin Institutional Repository
collection Online Access
description This paper analyses the consumption growth elasticity and inequality elasticity of poverty in Indonesia with a particular focus on the decentralisation period. Using provincial panel data, the paper finds that there were more pronounced effects of income inequality on regional poverty rates during later development periods up to decentralisation in Indonesia post-2002. This indicates that the pro-poor impact of economic growth using mean consumption per capita as a proxy of economic growth during decentralisation (a reduction of around 5.7 percentage points in the headcount poverty rate) has been offset to a greater extent by rising income inequality (up from 0.329 in 2002 to 0.380 in 2010) and by the stronger negative impact of inequality on regional poverty rates. In combination, the stronger negative impact of rising inequality has contributed to an increase of around 1.9 percentage points in the headcount poverty rate.
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spelling curtin-20.500.11937-132012017-09-13T14:58:12Z Revisiting the impact of consumption growth and inequality on poverty in Indonesia during decentralisation Miranti, R. Duncan, Alan Cassells, R. economic development poverty consumption growth inequality This paper analyses the consumption growth elasticity and inequality elasticity of poverty in Indonesia with a particular focus on the decentralisation period. Using provincial panel data, the paper finds that there were more pronounced effects of income inequality on regional poverty rates during later development periods up to decentralisation in Indonesia post-2002. This indicates that the pro-poor impact of economic growth using mean consumption per capita as a proxy of economic growth during decentralisation (a reduction of around 5.7 percentage points in the headcount poverty rate) has been offset to a greater extent by rising income inequality (up from 0.329 in 2002 to 0.380 in 2010) and by the stronger negative impact of inequality on regional poverty rates. In combination, the stronger negative impact of rising inequality has contributed to an increase of around 1.9 percentage points in the headcount poverty rate. 2014 Journal Article http://hdl.handle.net/20.500.11937/13201 10.1080/00074918.2014.980377 Routledge fulltext
spellingShingle economic development
poverty
consumption growth
inequality
Miranti, R.
Duncan, Alan
Cassells, R.
Revisiting the impact of consumption growth and inequality on poverty in Indonesia during decentralisation
title Revisiting the impact of consumption growth and inequality on poverty in Indonesia during decentralisation
title_full Revisiting the impact of consumption growth and inequality on poverty in Indonesia during decentralisation
title_fullStr Revisiting the impact of consumption growth and inequality on poverty in Indonesia during decentralisation
title_full_unstemmed Revisiting the impact of consumption growth and inequality on poverty in Indonesia during decentralisation
title_short Revisiting the impact of consumption growth and inequality on poverty in Indonesia during decentralisation
title_sort revisiting the impact of consumption growth and inequality on poverty in indonesia during decentralisation
topic economic development
poverty
consumption growth
inequality
url http://hdl.handle.net/20.500.11937/13201