Determinants of Food Expenditure and Household Income in Gunungkidul’s Karst Region

Abstract

Poverty is closely linked to both household income and food security. This condition is related to the insufficient purchasing power that people have to have access to food. The purpose of this study is to determine the determining factors of food expenditure and incomes of agricultural households in the karst region of Gunungkidul, Indonesia. The broader implications occur when the low welfare of farmers (with indicators of household income and food security) results in a declining human development index that hampers regional development. Due to the high level of poverty, the study is located in the karst mountainous region of Gunungkidul Regency. Soil infertility affects agricultural production, making it sub-optimal. Multiple linear regressions are used to estimate this study's findings by employing ordinary least squares (OLS). The research data uses primary data with questionnaires to respondents. The study concludes that the estimated parameters of farm household income, off-farm income, remittances, total household income and non-food expenditure are significantly correlated with total food expenditure. The estimated parameters of education, age, assets, remittances and off-farm employment of the head of the household are significantly correlated with total household income. Therefore, off-farm income and remittances contribute to the increase in total household income, alleviation of food insecurity and reduction of poverty in Karst Gunungkidul. The contribution of this research is that the results obtained can be taken into consideration for policy makers or local stakeholders to pay attention to significant determinants of total food expenditure and total household income.