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Abstract

In this new era of globalisation, all countries including Indonesia are targeting poverty alleviation to help people achieve welfare. Furthermore, this study empirically examines the impact of government spending, FDI, economic growth, and industrial growth on poverty. This research uses the Autoregressive Distributed Lag (ARDL) method. The data used is time series data from 1972 to 2021 obtained from the World Development Indicator website. The findings of the ARDL estimation show that government spending and industrial growth increase household income, both in the long-run and the short-run. In contrast, economic growth is negatively associated with poverty in both the short and long run. Meanwhile, FDI has no significant effect in the short term, but a significant negative effect in the long term, which has worsened poverty in Indonesia.

Bahasa Abstract

Di era baru globalisasi ini, semua negara termasuk Indonesia menargetkan pengentasan kemiskinan untuk membantu masyarakat mencapai kesejahteraan. Selain itu, kajian ini secara empiris mengkaji dampak belanja pemerintah, FDI, pertumbuhan ekonomi, dan pertumbuhan industri terhadap kemiskinan. Penelitian ini menggunakan metode Autoregressive Distributed Lag (ARDL). Data yang digunakan merupakan data time series dari tahun 1972 hingga 2021 yang diperoleh dari situs World Development Indicator. Hasil temuan estimasi ARDL menunjukkan bahwa pengeluaran pemerintah dan pertumbuhan industri meningkatkan pendapatan masyarakat dalam jangka panjang dan pendek. Sebaliknya, pertumbuhan ekonomi berhubungan negatif dengan kemiskinan, baik dalam jangka pendek maupun panjang. Sementara itu, FDI tidak berpengaruh signifikan dalam jangka pendek, tetapi berpengaruh negatif signifikan dalam jangka panjang, yang memperburuk kemiskinan di Indonesia.

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