Analysis of inflation, population, and economic growth on poverty in Muslim-majority provinces in Indonesia

Abstract

This study aims to determine the effect of inflation, population, and economic growth on poverty in Indonesia. The object of this research is the Muslim majority population in 10 provinces in Indonesia in 2017–2021. In this study, the data used are time series obtained from Statistics Indonesia (BPS). The method used to see the effect of using a panel data regression approach is the Random Effect Model. The study results show that simultaneously, inflation has no effect on poverty, population size also has a positive effect on poverty, while economic growth has a negative effect on poverty. Of all the variables, inflation, population, and economic growth simultaneously significantly affect poverty in 10 provinces with the majority Muslim population in Indonesia.

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

“…Meanwhile, the research outcomes of the existing research are mixed and inconclusive (Olaniyi et al. , 2023b; Vinayagathasan and Ramesh, 2022; Inegbedion and Obadiaru, 2022; Rizki and Solihati, 2022; Gyeke-Dako et al ., 2022; Sari and Rofiuddin, 2022; Sani and Yahaya, 2021; Sehrawat and Giri, 2018; Yolanda, 2017; Hassan et al. , 2016; Shrestha and Chaudhary, 2012).…”

“…Due to the macroeconomic implications of inflation on poverty, a plethora of studies have focused on the impact of inflation on poverty, with scanty or no attention paid to the likelihood of a reactionary effect from poverty to inflation (Danlami et al, 2020). Meanwhile, the research outcomes of the existing research are mixed and inconclusive Vinayagathasan and Ramesh, 2022;Inegbedion and Obadiaru, 2022;Rizki and Solihati, 2022;Gyeke-Dako et al, 2022;Sari and Rofiuddin, 2022;Sani and Yahaya, 2021;Sehrawat and Giri, 2018;Yolanda, 2017;Hassan et al, 2016;Shrestha and Chaudhary, 2012). These studies are restricted to the effect of inflation on poverty.…”