The factors that influences poverty rate in Indonesia/ Farhana Omar

• Main Author: Omar, Farhana
• Format: Student Project
• Language: English
• Published: 2018
• Subjects: Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product; Poor. Poverty
• Online Access: https://ir.uitm.edu.my/id/eprint/57441/1/57441.pdf; https://ir.uitm.edu.my/id/eprint/57441/

Based on the Web Finance (2018) Poverty is a person that lives below the poverty line and a condition where a person cannot fulfill basic needs for food, shelter, and clothing. It is generally separated by two types which is absolute poverty and relative poverty. However, poverty has a wide range of definition more than just not having enough money. In addition to a lack of money, the poor become powerless and have no authority to help themselves and completely ignored by society and politics. The poor economic condition affect most to the poor people. This research employ an OLS assumptions test regression analysis to identify the significance positive or negative of the study. This study covered from 1998-2017 time period within 20 years. The purpose of this study is to determine the relationship between financial development, foreign direct investment, inflation rate, economic growth, inflation and poverty In Indonesia. From the previous scholar, most of them has agreed the relationship between economic growth and poverty is positive, financial development and poverty is positive, foreign direct investment and poverty is positive and inflation and poverty is positive. However, there are some scholar disagree by stated that there are negative relationship on foreign direct investment, foreign direct investment (FDI) and GDP per capita It shows that those variables may give an impact towards poverty reduction. From this research found that all variables are negative relationship with poverty.