Strategic Area Development to Reduce Poverty and Regional Gaps in The District

Guswandi Guswandi

Abstract


Developing strategic areas utilizing existing potential will increase regional economic growth, overcome regional disparities, and reduce poverty. This study aims to determine the efficiency of district strategic area development in reducing regional disparities and poverty rates in Dharmasraya Regency for the 2016-2020 period. The results of the Data Envelopment Analysis (DEA) analysis, using the assumption that input changes are directly proportional to changes in output, show mixed results. Efficiency calculations show that investment, infrastructure, and business empowerment significantly reduce poverty and regional disparities in Dharmasraya Regency. This condition shows that developing strategic district areas can reduce regional disparities and poverty rates in Dharmasraya Regency. This research implies that it can assist the government in reducing poverty in Dharmasraya Regency by allocating funds for industrial development, expanding investment, and providing financial assistance for developing community-based creative businesses. If appropriately implemented, poverty in Dharmasraya Regency will be reduced.

How to Cite:

Guswandi. (2022). Strategic Area Development to Reduce Poverty and Regional Gaps in The District. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 319-338. https://doi.org/10.15408/sjie.v11i2.25895.

JEL Classification: R11, R58, L1


Keywords


regional economy; regional development; strategic area.

References


Angel, S., Heuberger, R., & Lamei, N. (2018). Differences Between Household Income from Surveys and Registers and How These Affect the Poverty Headcount: Evidence from the Austrian SILC. Social Indicators Research, 138(2), 575–603.

Anwar, M. (2014). New Modes of Industrial Manufacturing: India’s Experience with Special Economic Zones. Bulletin of Geography. Socio-Economic Series, 24, 7-25.

Arnia, A., & Efrida, W. (2013). Identification Of Coliform Contamination On Fresh Raw Beef Sold In TheMarket Around Bandar Lampung. Majority, 2(5), 43–50.

Aspinall, E. (2014). Health Care and Democratization in Indonesia. Democratization, 21(5), 803–823. https://doi.org/10.1080/13510347.2013.873791

Babkin, A., Vertakova, Y., & Plotnikov, V. (2017). Study and Assessment of Clusters Activity Effect on Regional Economy. SHS Web of Conferences, 35, 1063.

Badrudin, R. (2012). Poverty Measurement and Choice of Poverty Reduction Strategy: The Importance of Poverty Measurement in Determining the Right Strategy. Journal of Economics and Behavioral Studies, 4(10), 595–602.

Beliakov, S., & Kapustkina, A. (2016). Analysis of Performance Indicators of Functioning of Territories with Special Economic Status in the Russian Federation. Procedia Engineering, 165, 1424–1429. https://doi.org/10.1016/j.proeng.2016.11.874.

Bongo, M. F., Ocampo, L. A., Magallano, Y. A. D., Manaban, G. A., & Ramos, E. K. F. (2018). Input–Output Performance Efficiency Measurement of an Electricity Distribution Utility Using Super-Efficiency Data Envelopment Analysis. Soft Computing, 22(22), 7339–7353.

Bozhko, L. (2018). Development Scenarios for the Interregional Economic Interaction in the Context of Economy Clustering in the Republic of Kazakhstan. Energy Procedia, 147, 397–401. https://doi.org/10.1016/j.egypro.2018.07.109.

Brunner, H.-P. (2013). What is Economic Corridor Development and What Can It Achieve in Asia’s Subregions? Asian Development Bank Economics Working Paper Series, 117.

Chamidah, N., Guntoro, B., & Sulastri, E. (2020). Marketing Communication and Synergy of Pentahelix Strategy on Satisfaction and Sustainable Tourism. The Journal of Asian Finance, Economics and Business, 7(3), 177–190.

Cheng, C.-Y., Chien, M.-S., & Lee, C.-C. (2021). ICT Diffusion, Financial Development, and Economic Growth: An International Cross-country Analysis. Economic Modelling, 94, 662–671.

Chulaphan, W., & Barahona, J. F. (2018). Contribution of Disaggregated Tourism on Thailand’s Economic Growth. Kasetsart Journal of Social Sciences, 39(3), 401–406.

Ezmale, S., & Rimsane, I. (2014). Promoting the Plurilingual Awareness in Business Environment: Case of Rezekne Special Economic Zone. Procedia-Social and Behavioral Sciences, 110, 231–240. https://doi.org/10.1016/j.sbspro.2013.12.866.

Gereke, J., Schaub, M., & Baldassarri, D. (2018). Ethnic Diversity, Poverty and Social Trust in Germany: Evidence from a Behavioral Measure of Trust. PloS One, 13(7), e0199834. https://doi.org/10.1371/journal.pone.0199834.

Gilbert, A. G. (2014). Free housing for the Poor: An Effective Way to Address Poverty? Habitat International, 41, 253–261. https://doi.org/10.1016/j.habitatint.2013.08.009

Girma, Y., Terefe, H., Pauleit, S., & Kindu, M. (2019). Urban Green Infrastructure Planning in Ethiopia: The Case of Emerging Towns of Oromia Special Zone Surrounding Finfinne. Journal of Urban Management, 8(1), 75–88.

Glinskiy, V., Serga, L., & Zaykov, K. (2017). Identification Method of the Russian Federation Arctic Zone Regions Statistical Aggregate as the Object of Strategy Development and a Source of Sustainable Growth. Procedia Manufacturing, 8, 308–314. https://doi.org/10.1016/j.promfg.2017.02.039.

Goryushina, E., & Mesropyan, K. (2012). Economic Inequality and Political Instability Measuring by DEA and Alternative Indices: State of the Art and Research Perspectives for Cross-Regional Studies. Der Donauraum, 52(3–4), 445–464.

Hohberg, M., Landau, K., Kneib, T., Klasen, S., & Zucchini, W. (2018). Vulnerability to Poverty Revisited: Flexible Modeling and Better Predictive Performance. The Journal of Economic Inequality, 16(3), 439–454. https://doi.org/10.1007/s10888-017-9374-6.

Holtemöller, O., & Pohle, F. (2020). Employment Effects of Introducing a Minimum Wage: The Case of Germany. Economic Modelling, 89, 108–121. https://doi.org/10.1016/j.econmod.2019.10.006.

Ika, L. A., Diallo, A., & Thuillier, D. (2012). Critical Success Factors for World Bank Projects: An Empirical Investigation. International Journal of Project Management, 30(1), 105–116.

Ikemi, M., Ushijima, K., Otsuka, Y., Yamauchi, T., Nilawati, D., Wulan, D. R., & Sintawardani, N. (2018). Economic Situation of Value Chain Actors in Urban Slums of Bandung: A Case of Kiaracondong. IOP Conference Series: Earth and Environmental Science, 160(1), 12019. https://doi.org/10.1088/1755-1315/160/1/012019.

Jiang, Y., Lin, L., Ni, H., Ge, W., Cheng, H., Zhai, G., Wang, G., Ban, Y., Li, Y., & Lei, M. (2018). An Overview of the Resources and Environment Conditions and Major Geological Problems in the Yangtze River Economic Zone, China. China Geology, 1(3), 435–449. https://doi.org/10.31035/cg2018040

Krishnasamy, K., Shepherd, C. R., & Or, O. C. (2018). Observations of Illegal Wildlife Trade in Boten, a Chinese Border Town Within a Specific Economic Zone in Northern Lao PDR. Global Ecology and Conservation, 14, e00390.

Kumari, R., & Devadas, V. (2017). Modelling the Dynamics of Economic Development Driven by Agricultural Growth in Patna Region, India. Journal of Economic Structures, 6(1), 1–27. https://doi.org/10.1186/s40008-017-0075-x.

Lipták, F., Klasová, S., & Kováč, V. (2015). Special Economic Zone Constitution According to Cluster Analysis. Procedia Economics and Finance, 27, 186–193. https://doi.org/10.1016/s2212-5671(15)00988-0.

Luo, C., Li, S., & Sicular, T. (2020). The Long-Term Evolution of National Income Inequality and Rural Poverty in China. China Economic Review, 62, 101465.

Luong, T. T. H., Nguyen, T. M., & Nguyen, T. A. N. (2020). Rule of Law, Economic Growth and Shadow Economy in Transition Countries. The Journal of Asian Finance, Economics and Business, 7(4), 145–154.

Lyubimov, I. (2017). Income Inequality Revisited 60 Years Later: Piketty vs Kuznets. Russian Journal of Economics, 3(1), 42–53.

Marinho, E., Campelo, G., França, J., & Araujo, J. (2017). Impact of Infrastructure Expenses in Strategic Sectors for Brazilian Poverty. EconomiA, 18(2), 244–259.

Meutia, A. A., Lumowa, R., & Sakakibara, M. (2022). Indonesian Artisanal and Small-Scale Gold Mining—A Narrative Literature Review. International Journal of Environmental Research and Public Health, 19(7), 3955.

Moonen, P. C. J., Verbist, B., Schaepherders, J., Meyi, M. B., van Rompaey, A., & Muys, B. (2016). Actor-based Identification of Deforestation Drivers Paves the Road to Effective REDD+ in DR Congo. Land Use Policy, 58, 123–132.

Murdifin, I., Pelu, M. F. A. R., Perdana, A. A. H., Putra, K., Arumbarkah, A. M., Muslim, M., & Rahmah, A. (2019). Environmental Disclosure as Corporate Social Responsibility: Evidence from the Biggest Nickel Mining in Indonesia. International Journal of Energy Economics and Policy, 9(1), 115-122.

Nazir, M., Murdifin, I., Putra, A. H. P. K., Hamzah, N., & Murfat, M. Z. (2020). Analysis of Economic Development based on Environment Resources in the Mining Sector. The Journal of Asian Finance, Economics and Business, 7(6), 133–143.

Nguyen, H. H., & Nguyen, N. van. (2019). Factor Affecting Poverty and Policy Implication of Poverty Reduction: A Case Study for the Khmer Ethnic People in Tra Vinh Province, Viet Nam. The Journal of Asian Finance, Economics and Business, 6(1), 315–319.

Nugroho, I., & Dahuri, R. (2016). Pembangunan Wilayah: Perspektif Ekonomi, Sosial dan Lingkungan. LP3ES. Jakarta.

Park, J., Lim, S., & Bae, H. (2012). DEA-based Port Efficiency Improvement and Stepwise Benchmarking Target Selection. Information-An International Interdisciplinary Journal, 15, 6155–6172.

Pouw, N., & Gupta, J. (2017). Inclusive Development: a Multi-Disciplinary Approach. Current Opinion in Environmental Sustainability, 24, 104–108.

Pouw, N. R. M., Rohregger, B., Schüring, E., Alatinga, K. A., Kinuthia, B., & Bender, K. (2020). Social Protection in Ghana and Kenya Through an Inclusive Development Lens. Complex Effects and Risks. World Development Perspectives, 17, 100173. https://doi.org/10.1016/j.wdp.2020.100173.

Shao, C., Meng, X., Cui, S., Wang, J., & Li, C. (2016). Income-related Health Inequality of Migrant Workers in China and Its Decomposition: an Analysis Based on the 2012 China Labor-Force Dynamics Survey Data. Journal of the Chinese Medical Association, 79(10), 531–537.

Sun, C., Liu, L., & Tang, Y. (2018). Measuring The Inclusive Growth of China’s Coastal Regions. Sustainability, 10(8), 2863.

Suriyanti, S., Firman, A., Nurlina, N., Ilyas, G. B., & Putra, A. H. P. K. (2020). Planning Strategy of Operation Business and Maintenance by Analytical Hierarchy Process and Strength, Weakness, Opportunity, and Threat Integration for Energy Sustainability. International Journal of Energy Economics and Policy, 10(4), 221.

Sutriadi, R., Safrianty, A. A., & Ramadhan, A. (2015). Discussing Cities and Regencies in the Context of Regional Rating System. Promoting Communication, Reaching Sustainable Growth. Procedia Environmental Sciences, 28, 166–175.

Thabrani, G., Irfan, M., Mesta, H. A., & Arifah, L. (2019). Efficiency Analysis of Local Government Health Service in West Sumatra Province Using Data Envelopment Analysis (DEA). 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018). Atlantis Press.

Tsuneyoshi, T., Hashimoto, A., & Haneda, S. (2012). Quantitative Evaluation of Nation Stability. Journal of Policy Modeling, 34(1), 132–154. https://doi.org/10.1016/j.jpolmod. 2011.06.003.

Uttama, N. P. (2014). Investment Promotion Policy in Potential Border Zone. Procedia Economics and Finance, 14, 615–623. https://doi.org/10.1016/s2212-5671(14)00750-3.

Wojcik, V., Dyckhoff, H., & Clermont, M. (2019). Is Data Envelopment Analysis a Suitable Tool for Performance Measurement and Benchmarking in Non-production Contexts? Business Research, 12(2), 559–595.

Yalegama, S., Chileshe, N., & Ma, T. (2016). Critical Success Factors for Community-Driven Development Projects: A Sri Lankan Community Perspective. International Journal of Project Management, 34(4), 643–659.

Yujin, L., & Zhiyong, Z. (2013). Technical Methods of Comprehensive Transportation Plans in the Airport Economic Zone-taking Xiaogan Airport Economic Zone as a Case. Procedia-Social and Behavioral Sciences, 96, 182–187.

Zaini, M. F., Maulud, K. N. A., & Hamzah, F. M. (2018). Assessment the Accessibility of Poverty Distribution to Infrastructure and Facilities in Perlis Malaysia. IOP Conference Series: Earth and Environmental Science, 169(1), 12015.

Zasada, I., Weltin, M., Reutter, M., Verburg, P. H., & Piorr, A. (2018). EU’s Rural Development Policy at the Regional Level—Are Expenditures for Natural Capital Linked with Territorial Needs? Land Use Policy, 77, 344–353.

Zuhdiyaty, N., & Kaluge, D. (2017). Analisis Faktor-Faktor Yang Mempengaruhi Kemiskinan Di Indonesia Selama Lima Tahun Terakhir. Jurnal Ilmiah Bisnis dan Ekonomi Asia, 11(2), 27–31.


Full Text: PDF

DOI: 10.15408/sjie.v11i2.25895

Refbacks

  • There are currently no refbacks.