Pengarang
Muhammad Amir Arham
Subjek
- Ekonomi
Abstrak
Abstract
This study investigates the impact of fiscal transfer, specifically the Village Fund Transfer, on rural income inequality and rural poverty.
Studies on fiscal transfer offers contrasting outcomes, some argues that fiscal transfer suppresses wealth disparity, while others argue that
it tends to widen disparity. This study employs descriptive analysis in estimating the elasticity of income inequality and poverty rate before
and after the Village Fund Transfer. It develops multiple regressions model on panel datasets of 33 provinces in Indonesia before and after
the implementation of Village Fund Transfer. This study suggests that the elasticity of income inequality is higher after the implementation
of village fund transfer. Rural poverty tends to decline annually, however, the elasticity changes is lower after the implementation of village
fund transfer. Furthermore, this study suggests that village fund transfer is insignificant in coping with the issue of income inequality, while
education and the level of labor productivity of agricultural sector appears to be the determinant factor in tackling the issue of income
inequality in the rural areas. This study further reveals the significance of village fund transfer in suppressing the rural poverty rate. This
study also highlights the significance of human resources quality and agricultural sector in reducing poverty rate in rural areas.
Keywords: Village Fund Transfer, Income Inequality, Rural Poverty
Penerbit
Korea Distribution Science Association (KODISA)
Kontributor
-
Terbit
2020
Tipe Material
ARTIKEL
Right
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