Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java Province

Central Java, despite experiencing robust economic growth, continues to grapple with significant poverty, reflecting a broader national challenge of uneven wealth distribution. The poverty rate as of 2023 stands at 10.77%, highlighting persistent economic disparities. The study aims to analyze how s...

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Main Authors: Moh. Nur Khaqiqi, Lilik Sugiharti
Format: Article
Language:English
Published: Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas Airlangga 2025-06-01
Series:JDE (Journal of Developing Economies)
Subjects:
Online Access:https://e-journal.unair.ac.id/JDE/article/view/57962
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author Moh. Nur Khaqiqi
Lilik Sugiharti
author_facet Moh. Nur Khaqiqi
Lilik Sugiharti
author_sort Moh. Nur Khaqiqi
collection DOAJ
description Central Java, despite experiencing robust economic growth, continues to grapple with significant poverty, reflecting a broader national challenge of uneven wealth distribution. The poverty rate as of 2023 stands at 10.77%, highlighting persistent economic disparities. The study aims to analyze how socioeconomic factors like economic growth, HDI, and wage levels contribute to poverty alleviation within the region. The research uses a quantitative approach, employing regression random effect models to understand the dynamics between these variables and poverty rates over the years 2014-2023. Data were processed using Stata 17. The analysis indicates that economic growth in Central Java has an insignificant direct impact on reducing poverty. The research highlights a significant negative correlation between HDI and poverty levels. This study found that wage increases have not significantly impacted poverty reduction. Simultaneously, GDRP growth, HDI, and wages affect poverty in Central Java province. The findings suggest that merely focusing on economic growth and wage increases is not enough to reduce poverty. Comprehensive strategies that also improve human development indices and address income distribution are crucial for effective poverty alleviation.
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institution DOAJ
issn 2541-1012
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language English
publishDate 2025-06-01
publisher Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas Airlangga
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series JDE (Journal of Developing Economies)
spelling doaj-art-871515d76b024e1da8f287e1cdfea64d2025-08-20T03:14:49ZengDepartemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas AirlanggaJDE (Journal of Developing Economies)2541-10122528-20182025-06-011019010510.20473/jde.v10i1.5796256128Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java ProvinceMoh. Nur Khaqiqi0https://orcid.org/0009-0001-9446-8119Lilik Sugiharti1https://orcid.org/0000-0001-5156-7929Department of Economics, Universitas Airlangga, Surabaya, IndonesiaDepartment of Economics, Airlangga University, Surabaya, IndonesiaCentral Java, despite experiencing robust economic growth, continues to grapple with significant poverty, reflecting a broader national challenge of uneven wealth distribution. The poverty rate as of 2023 stands at 10.77%, highlighting persistent economic disparities. The study aims to analyze how socioeconomic factors like economic growth, HDI, and wage levels contribute to poverty alleviation within the region. The research uses a quantitative approach, employing regression random effect models to understand the dynamics between these variables and poverty rates over the years 2014-2023. Data were processed using Stata 17. The analysis indicates that economic growth in Central Java has an insignificant direct impact on reducing poverty. The research highlights a significant negative correlation between HDI and poverty levels. This study found that wage increases have not significantly impacted poverty reduction. Simultaneously, GDRP growth, HDI, and wages affect poverty in Central Java province. The findings suggest that merely focusing on economic growth and wage increases is not enough to reduce poverty. Comprehensive strategies that also improve human development indices and address income distribution are crucial for effective poverty alleviation.https://e-journal.unair.ac.id/JDE/article/view/57962povertyeconomic growthhdiwages
spellingShingle Moh. Nur Khaqiqi
Lilik Sugiharti
Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java Province
JDE (Journal of Developing Economies)
poverty
economic growth
hdi
wages
title Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java Province
title_full Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java Province
title_fullStr Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java Province
title_full_unstemmed Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java Province
title_short Analysis of the Effect of Socioeconomic Factors on Poverty in Central Java Province
title_sort analysis of the effect of socioeconomic factors on poverty in central java province
topic poverty
economic growth
hdi
wages
url https://e-journal.unair.ac.id/JDE/article/view/57962
work_keys_str_mv AT mohnurkhaqiqi analysisoftheeffectofsocioeconomicfactorsonpovertyincentraljavaprovince
AT liliksugiharti analysisoftheeffectofsocioeconomicfactorsonpovertyincentraljavaprovince