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The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia

Suryahadi, Asep; Suryadarma, Daniel; Sumarto, Sudarno


In this paper, we investigate the relationship between economic growth and poverty reduction by differentiating growth and poverty into their sectoral composition and urban-rural location using data from Indonesia. We find that rural services growth reduces poverty in all sectors and locations. However, urban services growth has the largest effect on poverty in most sectors. Finally, we also find that rural agriculture growth strongly reduces poverty in rural areas, the largest contributor to...[Show more]

CollectionsANU Research Publications
Date published: 2009
Type: Journal article
Source: Journal of Development Economics
DOI: 10.1016/j.jdeveco.2008.08.003


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