Impact Of Mining Sector To Poverty And Income Inequality In Indonesia: A Panel Data Analysis
Sudarlan, Rina Indiastuti, Arief Anshory Yusuf
Keywords: economic growth, income inequality, Indonesia, mining sector and poverty
Abstract: Since the decentralization was implemented by Indonesia government in the last decade, the provincial government has more powerful authority to use and manage on the own provinces. The use of natural resources is blessed by the God for community welfare. By using 30 provincial cross-section data that the mining sector has a negative affected and statistically significant to economic growth and it has unsignificantly affected for decreasing poverty and also unsignificant for income inequality in Indonesia. The purpose of this research is to understand the affect of mining sector to poverty and income inequality in Indonesia from 2002 to 2011. The research used explanatory method by using time-series and cross-section data and applied a two stage simultaneous equation method (2SLS). The important finding in this research is (a) mining sector had a negative impact on economic growth and economic growth was not significant statistically for poverty reduction, (b) inflation did not have any impact on economic growth and had a positive impact poverty headcount, poverty gap and poverty severity, and (c), economic growth had positive impact on income inequality.
 Abdul Hakim (2009), Economic Development, Third Printing, Ekonisia Publisher, Yogyakarta.
 Adams, Richard H. Jr, (2003). Economic Growth, Inequality and Poverty: Finding from a New Data Set. Policy Research Working Paper #2972. World Bank. February
 Adei, D, I Addei dan H.A. Kwadjose, (2011), A Study of Effects Mining Activities on the Health Status of People: A Case Study. Research Journal of Applied Sciences, Engineering and Technology 3(2): 99-104.
 Arimah, Ben C (2004). Poverty Reduction and Human Development in Africa, Journal of Human Development Vol 5 No. 3 November 2004.
 Asep Suryahadi dkk (2008), The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia. Journal of Development Economic, 89 (2009) 109-117
 Baltagi, Badi H. (2005), Econometric Analysis of Panel Data, Third Edition, John Wiley and Sons Ltd, England.
 Barro, Robert J (2000), Inequality and Growth in a Panel Countries, Journal of Economic Growth, 5:5-32, Kluwer Academic Publisher.
 B Adesoye A, Maku Olukayode E dan Atanda Akinwande, (2010). Dynamic Analysis of Government Spending and Economic Growth in Nigeria. Journal of Management and Society, Vol 1 No 2. Pp 27-37 December 2010
 Berndt, Ernst R. (1990), The Practice of Econometrics: Classic and Contemporary. Addison-Wesley Publishing Company. Massachusetts.
 Bourguignon, Francois (2004). Poverty-Growth-Inequality Triangle, Paper was presented at The Indian Council for Research on International Economic Relations, New Delhi, on February 4, 2004.
 Central Bureau of Statistics (2009), Analysis of Poverty, Employment and Income Distribution. Jakarta.
 Central Bureau of Statistics (2011), BPS Strategic Data, Jakarta.
 Chaudhry, Imran Sharif et al ( 2010), Does Education Alleviate Poverty? Empirical Evidence from Pakistan, International Research Journal of Finance and Economics, EuroJournal Publishing (2010).
 Chinake, Hazel (1997), Strategies for poverty Alleviation in Zimbabwe, Journal of Social Development in Africa (1997), 12, 1, 39-51
 Djoni Hartono dan Toni Irawan (2011), Decentralization Policy and Equality : A Theil Analysis Indonesian Income Inequality, European Journal Economics, Finance and Administrative Sciences, EuroJournals Inc.
 Fatima, Nasrin (2009 ), Investment in Graduate and Professional Degree Education : Evidence of State Workforce Productivity Growth, Journal of Education Administration and Policy, University of Louisiana, Florida.
 Gelaw, Fekadu (2010), The dynamic relationship among poverty, inequality, and growth in rural Ethiopia: A micro evidence, Journal of Development and Agricultural Economics Vol. 2(5), pp 197-208.
 Gujarati, Damodar (2004). Basic Econometrics. 4th Edition McGraw-Hill Inc. New York
 Haughton, Jonnathan dan Shahidur R. Kandker. (2009). Handbook on Poverty and Inequality. The World Bank. Washington DC.
 Hussain, Shahzad et al (2009). Demographic Transition and Economic Growth in Pakistan. European Journal of Scientific Research. Pp 491-499.
 Ijaiya, Gaffar T et al (2011), Economic Growth and Poverty Reduction in Nigeria, International Journal of Business and Sosial Science Vol 2 No. 15 August 2011
 Iman Sugema dkk (2010), The Impact of Inflation on Rural Poverty in Indonesian: an Econometrics Approach, International Research Journal of Finance and Economics, EuroJournals Publishing.
 Ismail, Norhazlin (2010), Income Inequality, Economic Freedom and Economic Growth, European Journal of Economics, Finance and Administrative Sciences, EuroJournals Inc.
 Janvry, Alain De dan Elisabeth Sadoulet (2000), Growth, Poverty and Inequality in Latin America: A Causal Analysis, 1970-94. Review of Income and Wealth Series 46, Number 3, September 2000.
 Jegede, Charles A. at al (2011), Impact of Microfinance on Poverty Alleviation in Nigeria: An Empirical Investigation, European Journal of Humanities and Social Sciences, Volume 2, No. 1 ( 2011).
 Khodabakhshi Akbar, (2011). Relationship between GDP and Human Development Indeces in India, International Journal of Trade, Economics and Finance. vol 2 No 3 June 2011.
 Kitula, A.G.N (2005). The environmental and socio-economic impacts of mining on local livelihoods in Tanzania: A case study of Geita District. Journal of Cleaner Production 14 (2006) 405-414.
 Kuznet, Simon. (1955). Economic Growth and Income Inequality. American Economic Review 45(1). 1-28. March
 Lincolin Arsyad. (1993). Pengantar Perencanaan Ekonomi. Penerbit Media Madya Madda. Yogyakarta.
 Lipsey, Robert E. dan Fredrik Sjoholm (2004). Foreign Direct Investment, Education and Wages in Indonesia Manufacturing. Journal of Development Economics. Stockholm, Sweden.
 Mehmood, Rashid dan Sara Sadiq (2010), The Relationship between Government Expenditure and Poverty: A Cointegration Analysis. Romanian Journal of Fiscal Policy, Volume 1, Issue 1, July-December 2010, Pages 29-37
 Miranti, Ermina (2008), Prospek Batubara di Indonesia, Economic Review No. 214, December 2008.
 Nurudeen, Abu dan Abdullahi Usman, (2010). Government Expenditure And Economic Growth in Nigeria, 1970-2008: A Disaggregated Analysis. Business and Economics Journal, Vol 2010: BEJ-4.
 Ravallion, Martin (2001), ), Growth, Inequality and Poverty: Looking Beyond Average, World Development Vol 29 No. 11 pp. 1803-1815.
 Ravallion, Martin dan Shaohua Chen (2003), ), Measuring for poor growth, Economics letters 78: 93-99.
 Romer, David, (2006). Advanced Macroeconomics. MicGraw-Hill. New York
 S, Bakare A dan Olubukon Sanmi (2011). Health Care Expenditure and Economic Growth in Nigeria: An Empirical Study, Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 2 (2): 83-87
 Shankar, B dan Chidambaraswamy (2009 ), Urban Poverty Alleviation: Experience of Community Development Initiatives in Karnataka, International Journal of Trends in Engineering, Vol 1 No. 6, May 2009
 Sing, Gurdeep, (2008), Mitigating Environmental And Social Impacts of Coal Mining in India, Mining Engineers’ Journal.
 Djojohadikusumo, (1994). Basic Theory of Economic Growth and Development, Development of Economic Thought. Book II. LPES. Jakarta.
 Tawiah, Kwesi Amponsah dan Kwasi Dartey Baah, (2011). The Mining Industry in Ghana : A Blessing or a Curse. International Journal of Business and Social Science Vol 2 No. 12 July 2011
 United Nation Development Program, 1990, Human Development Report 1990, Oxford University Press, New York,
 Verbeek, Marno (2004), A Guide to Modern Econometrics, 2nd Edition, John Wiley & Son Ltd, Rotterdam.
 Wodon, Quentin T (1999), Growth, Poverty and Inequality : A Regional Panel for Bangladesh, The World Bank.
 World Bank (2001), Indonesia Constructing a New Strategy for Poverty Reduction, October 29, 2001. East & Asia Pacific Region, World Bank Office Jakarta, Environment and Social Development Unit.
 Zaman, Khalid, et al (2010). An Empirical Analysis of Growth, Inequality and Poverty Triangle in Pakistan: Cointegration Approach (1964-2006). International Research Journal of Finance and Economics. EuroJournal Publishing, Inc.