The impact of economic openness and growth on poverty alleviation in Indonesia
List of Authors
  • Angelina Ika Rahutami

Keyword
  • Poverty alleviation, economic openness, government role, Error Correction Model

Abstract
  • Poverty is a concern for almost all countries, including Indonesia. Many poverty reduction policies have been implemented and have brought significant results for poverty reduction. Another approach to poverty reduction is through the effects of economic openness and economic growth. This study uses secondary data from 2000-2018 with an Error Correction Model of regression. This study aims to describe the conditions of economic openness and poverty in Indonesia and analyze how economic openness and growth contribute to poverty reduction. The study results show that foreign direct investment inflow does not significantly impact poverty because it may not provide employment suitable for low-income families' conditions. In the short and long term, international trade and economic growth are crucial factors in poverty reduction. The study results also show that government policies are the primary key to reducing poverty.

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