Realizing inclusive economic growth: analysis of the determinants of income and poverty reduction on the islands of Sumatra and Java / Mairizal Salehudin Siatan ... [et al.]

Siatan, Mairizal Salehudin and Marselina and Suparta, I Wayan and Hanif (2025) Realizing inclusive economic growth: analysis of the determinants of income and poverty reduction on the islands of Sumatra and Java / Mairizal Salehudin Siatan ... [et al.]. Asia-Pacific Management Accounting Journal (APMAJ), 20 (1): 6. pp. 147-181. ISSN 2550-1631

Abstract

Inclusive growth involves social and economic dimensions, emphasizing participation from all societal segments in development processes and outcomes. This study used panel data comprising time series (2017–2022) and cross sections from 10 provinces in Sumatra and 6 in Java, analyzed
using the Ordinary Least Square (OLS) method. The results revealed that 1% significant negative inflation reduced inclusive growth by 0.064%, 1 kilometer of good road infrastructure increased it by 0.061%, and a 1-person increase in the workforce boosted it by 0.065%. Regarding income inclusiveness and poverty reduction, a 1-million-rupiah rise in the agricultural sector’s GRDP increased inclusive growth by 0.14%, an additional person in the population contributed 0.99%, and a 1% rise in financial inclusion enhanced it by 0.07%. In Sumatra, the agricultural sector was pivotal for inclusive growth, while in Java, population density was more significant. Across both regions, road infrastructure, workforce, and financial inclusion collectively drove connectivity, productivity, and poverty reduction. This research provides a vital framework for developing area-specific policies that promote inclusive development.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Siatan, Mairizal Salehudin
mairizal@radenintan.ac.id
Marselina
UNSPECIFIED
Suparta, I Wayan
UNSPECIFIED
Hanif
UNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Economic development. Development economics. Economic growth
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
UiTM Journal Collections: UiTM Journals > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 20
Number: 1
Page Range: pp. 147-181
Keywords: Economy, inclusive growth, income, poverty
Date: April 2025
URI: https://ir.uitm.edu.my/id/eprint/115808
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