Effect of Labor Productivity on Poverty in West Kalimantan

Abstract

The purpose of this study was to determine the effect of labor productivity on poverty, economic growth and GDP per capita in West Kalimantan, and to determine the effect of economic growth and GDP per capita on poverty in West Kalimantan. The variables used are poverty level, labor productivity, economic growth and GDP per capita of 14 districts / cities in West Kalimantan from 2008-2017 sourced from the Central Statistics Agency of West Kalimantan. Analysis used by using path analysis. The results show that labor productivity has a negative and significant effect on poverty. Labor productivity partially has a positive and significant effect on economic growth and GDP per capita, while economic growth and GDP per capita have no partial effect on poverty, and a greater direct effect on labor productivity on poverty in West Kalimantan than indirect effects either through economic growth and GDP per capita.

A Simple Mitigation Model of Poverty Reduction in Indonesia

“…Furthermore, the increase in productive capacity can prevent and at the same time reduce unemployment and poverty in the community. These results support previous research which states that labor productivity has a negative and significant effect on poverty (Firman et al, 2019). Furthermore, the results of empirical research of Firman et al (2019) explain that labor productivity has a positive and significant effect on economic growth and per capita GRDP, while economic growth and per capita GRDP do not affect poverty in West Kalimantan.…”

“…These results support previous research which states that labor productivity has a negative and significant effect on poverty (Firman et al, 2019). Furthermore, the results of empirical research of Firman et al (2019) explain that labor productivity has a positive and significant effect on economic growth and per capita GRDP, while economic growth and per capita GRDP do not affect poverty in West Kalimantan. This means that the research provided additional strong empirical evidence to the Keynesian theory of economic growth as the most effective aspect in poverty alleviation that was increasingly being questioned.…”

Determinant of Economic Factors on Economic Growth in West Kalimantan Province 2011-2019

“…The large number of workers used will affect economic growth, but if the number of workers used is too much, there will be a decrease in the value added (Ricardo, 1951). Labor productivity partially has a positive and significant effect on economic growth and GDP per capita (Firman, et al, 2019).…”