|
Does Microfinance Affect Poverty Reduction and Inequality in Indonesia?
[Full Text]
AUTHOR(S)
Mahardhi Arif, Munawar Ismail, Dwi Budi Santoso
KEYWORDS
Inequality, Indonesia, Microfinance, Microcredit, Poverty, Poverty Reduction, Rural Bank.
ABSTRACT
This study is to discuss the question of whether microfinance (specifically micro-credit) can reduce poverty and income inequality in Indonesia. Using data from 33 provinces in Indonesia, we show that higher levels of micro-credit provision can indeed reduce poverty in Indonesia. However, it turns out that this cannot be done to reduce the income income inequality. The results of this study add to the discussion about the impact of microfinance on poverty and inequality in Indonesia. Because so far micro finance is considered a very effective tool to be applied in an effort to improve people's welfare by reducing the level of poverty and inequality in Indonesia. Although poverty can decline, but no less important is economic development must be followed by a decrease in the gap between the rich and poor.
REFERENCES
[1] Badan Pusat Statistik. “Kemiskinan Dan Ketimpangan.” https://www.bps.go.id/subject/23/kemiskinan-dan-ketimpangan.html (April 2, 2018).
[2] Bakhtiari, Sadegh. 2011. “Microfinance And Poverty Reduction: Some International Evidence.” Int Bus Econ Res J 5.
[3] Bateman, Milford, and Ha-Joon Chang. 2009. “The Microfinance Illusion.” SSRN Electronic Journal.
[4] Beck, Thorsten, Asli Demirguc-Kunt, and Ross Levine. 2007. “Finance, Inequality and the Poor.” Journal of Economic Growth 12(1): 27–49.
[5] Becker, Gary S. 1995. Human Capital and Poverty Alleviation.
[6] Dollar, David, and Aart Kraay. 2002. “Growth Is Good for the Poor.” Journal of Economic Growth 7(3): 195–225.
[7] Greenwood, Jeremy, and Boyan Jovanovic. 1990. “Financial Development, Growth, and the Distribution of Income.” Journal of Political Economy 98(5): 1076–1107.
[8] Jalilian, Hossein, and Colin Kirkpatrick. 2002. “Financial Development and Poverty Reduction in Developing Countries.” International Journal of Finance & Economics 7: 97–108.
[9] Miled, Kamel Bel hadj, and Jalel-Eddine Ben Rejeb. 2018. “Can Microfinance Help to Reduce Poverty? A Review of Evidence for Developing Countries.” Journal of the Knowledge Economy 9(2): 613–35. https://econpapers.repec.org/RePEc:spr:jknowl:v:9:y:2018:i:2:d:10.1007_s13132-015-0348-2.
[10] Pollin, Robert (2007). “Microcredit: False Hopes and Real Possibilities”. Foreign Policy Focus, http://www.fpif.org/fpiftxt/4323, accessed on Mar. 1, 2019
[11] Roodman, David, and Jonathan Morduch. 2009. “The Impact of Microcredit on the Poor in Bangladesh : Revisiting the Evidence.” (174).
[12] Seven, Unal, and Yener Coskun. 2016. “Does Financial Development Reduce Income Inequality and Poverty? Evidence from Emerging Countries.” Emerging Markets Review 26: 34–63. http://dx.doi.org/10.1016/j.ememar.2016.02.002.
[13] Todaro, M P, and S C Smith. 2012. Economic Development. Addison-Wesley.
|
