Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience

Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial s...

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Main Authors:	Dewi, Sonia, Abd Majid, M. Shabri, ., Aliasuddin, Kassim, Salina
Format:	Article
Language:	English English English
Published:	School of Economics and Business in Sarajevo 2018
Subjects:	HB Economic Theory HG Finance HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/65327/ http://irep.iium.edu.my/65327/ http://irep.iium.edu.my/65327/ http://irep.iium.edu.my/65327/1/65327_Dynamics%20of%20financial%20development.pdf http://irep.iium.edu.my/65327/7/65327%20Dynamics%20of%20Financial%20Development%2C%20Economic%20Growth%2C%20and%20Poverty%20Alleviation_wos.pdf http://irep.iium.edu.my/65327/12/65327_Dynamics%20of%20financial%20development_SCOPUS.pdf

id	iium-65327
recordtype	eprints
spelling	iium-653272019-01-24T03:10:22Z http://irep.iium.edu.my/65327/ Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience Dewi, Sonia Abd Majid, M. Shabri ., Aliasuddin Kassim, Salina HB Economic Theory HG Finance HG3368 Islamic Banking and Finance Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial sector towards poverty reduction. This study aims to empirically explore the interlinkages between financial sector development and poverty reduction in Indonesia. Focusing on annual data covering the period from 1980 to 2015, the study adopts the Autoregressive Distributed Lag (ARDL) cointegration approach to examine the long-run relationship between the variables. The study found that there is a long-run relationship between financial development, economic growth, and poverty reduction in Indonesia. It also documented a unidirectional causality running from the financial sector to poverty reduction and a bidirectional causality between economic growth and poverty reduction. Therefore, policies to ensure the conducive growth of the financial sector would go a long way in promoting the economy, creating employment opportunities, and consequently accelerating poverty eradication. School of Economics and Business in Sarajevo 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/65327/1/65327_Dynamics%20of%20financial%20development.pdf application/pdf en http://irep.iium.edu.my/65327/7/65327%20Dynamics%20of%20Financial%20Development%2C%20Economic%20Growth%2C%20and%20Poverty%20Alleviation_wos.pdf application/pdf en http://irep.iium.edu.my/65327/12/65327_Dynamics%20of%20financial%20development_SCOPUS.pdf Dewi, Sonia and Abd Majid, M. Shabri and ., Aliasuddin and Kassim, Salina (2018) Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience. South East European Journal of Economics and Business, 13 (1). pp. 17-30. http://journal.efsa.unsa.ba/index.php/see/article/view/664/225 10.2478/jeb-2018-0002
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HB Economic Theory HG Finance HG3368 Islamic Banking and Finance
spellingShingle	HB Economic Theory HG Finance HG3368 Islamic Banking and Finance Dewi, Sonia Abd Majid, M. Shabri ., Aliasuddin Kassim, Salina Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience
description	Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial sector towards poverty reduction. This study aims to empirically explore the interlinkages between financial sector development and poverty reduction in Indonesia. Focusing on annual data covering the period from 1980 to 2015, the study adopts the Autoregressive Distributed Lag (ARDL) cointegration approach to examine the long-run relationship between the variables. The study found that there is a long-run relationship between financial development, economic growth, and poverty reduction in Indonesia. It also documented a unidirectional causality running from the financial sector to poverty reduction and a bidirectional causality between economic growth and poverty reduction. Therefore, policies to ensure the conducive growth of the financial sector would go a long way in promoting the economy, creating employment opportunities, and consequently accelerating poverty eradication.
format	Article
author	Dewi, Sonia Abd Majid, M. Shabri ., Aliasuddin Kassim, Salina
author_facet	Dewi, Sonia Abd Majid, M. Shabri ., Aliasuddin Kassim, Salina
author_sort	Dewi, Sonia
title	Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience
title_short	Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience
title_full	Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience
title_fullStr	Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience
title_full_unstemmed	Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience
title_sort	dynamics of financial development, economic growth and poverty alleviation: the indonesian experience
publisher	School of Economics and Business in Sarajevo
publishDate	2018
url	http://irep.iium.edu.my/65327/ http://irep.iium.edu.my/65327/ http://irep.iium.edu.my/65327/ http://irep.iium.edu.my/65327/1/65327_Dynamics%20of%20financial%20development.pdf http://irep.iium.edu.my/65327/7/65327%20Dynamics%20of%20Financial%20Development%2C%20Economic%20Growth%2C%20and%20Poverty%20Alleviation_wos.pdf http://irep.iium.edu.my/65327/12/65327_Dynamics%20of%20financial%20development_SCOPUS.pdf
first_indexed	2023-09-18T21:32:42Z
last_indexed	2023-09-18T21:32:42Z
_version_	1777412617497739264

Dynamics of financial development, economic growth and poverty alleviation: the Indonesian experience

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