TECHNOLOGICAL PROGRESS AND POVERTY REDUCTION IN INDONESIA

Muchdie, Muchdie (2017) TECHNOLOGICAL PROGRESS AND POVERTY REDUCTION IN INDONESIA. International Journal of Research in Social Sciences, 7 (3). pp. 248-265. ISSN 2249-2496

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Abstract

This paper examined the impact of technological progress on poverty reduction, with
unemployment rate and economic growth as moderating variables, in Indonesia during the period
of 2004-2013. It was coincided with two perods of Yudhoyono administration.Technological
progress was measured by total factor productivity (TFP) growth, unemployment was
measuredby open unemployment rate, economic growth was measured by the growth of Gross
Domestic Product based on the year of 2000 constant price, and poverty reduction was measured
by the percentage of poor people. Impact analysis was conducted using SEM-Path Analysis
techniques. Most data were directly gathered from the National Statistics Agency, except data on
TFP growth. The results showed that first, technological progress,directly, had a not significant
positive impact on poverty reduction (Path-1). Second, technological progress, indirectly, had a
positive significant impact on poverty reduction (Path-2). Third, technological progress,
indirectly, had a positive significant impact on poverty reduction (Path-3). Fourth, technological
progress, indirectly, had positive significant impact on poverty reduction (Path-4). Technological
progress was important factor for poverty reduction but it was not sufficient conditions.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory
Depositing User:	admin repository uhamka
Date Deposited:	09 Mar 2017 04:39
Last Modified:	09 Mar 2017 04:40
URI:	http://repository.uhamka.ac.id/id/eprint/186

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