Jurnal Ekonomi Pembangunan
Vol 11 No 2 (2022): Volume 11 Nomor 2 Tahun 2022

The Relationship Between Absolute Poverty Income Inequality in Rural and Urban Areas in Indonesia: The Granger Causality Approach

Candra Mustika (Universitas Jambi)
Haryadi Haryadi (Universitas Jambi)
Junaidi Junaidi (Universitas Jambi)
Zamzami Zamzami (Universitas Jambi)



Article Info

Publish Date
03 Jul 2022

Abstract

This study aims to determine the relationship between poverty and inequality in rural and urban areas by using the Granger causality test approach. This research method uses the Granger causality test analysis tool with rural and urban areas as objects in all provinces in Indonesia with use data from thirty four province and period year from 2014 until 2020. The results of the Granger causality test for rural areas show that there is a realtionship unidirectional relationship between poverty and inequality, the relationship shows significant inequality that causes poverty in rural areas, that meaning in rural area absolute poverty happen because inequality income distribution, while the results of causality tests for urban areas show that there is no relationship at all between poverty and inequality in the urban areas. that meaning In urban areas no causality between absolute poverty and inequality income distribution, this result shows that poverty and inequality in urban areas do not contain a direct one way or two-way relationship.

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Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

JOURNAL OF ECONOMICS DEVELOPMEN (JEP) is a journal of Economics Development issued by Faculty of Economics and Business Lampung University. JEP is issued three times a year on April, August and December. The Redaction Board accept only research in the field of legal science that already in the form ...