Exploring the Regional Multidimensional Poverty Pattern in Indonesia: Does Climate Matter?

Ira Eka Pratiwi; Niraj Prakash Joshi

doi:10.15408/etk.v24i2.39523

Authors

Ira Eka Pratiwi State Islamic Institute (IAIN) Fattahul Muluk Papua
Niraj Prakash Joshi The IDEC Institute, Hiroshima University

DOI:

https://doi.org/10.15408/etk.v24i2.39523

Keywords:

multidimensional poverty index, climate change, provincial data, indonesia

Abstract

Research originality: This study develops a comprehensive regional measure of poverty using the capability approach to understand the pattern of multidimensional poverty in Indonesia.

Research objectives: This study has two objectives: first, to construct and examine multidimensional poverty levels in 33 Indonesian provinces from 2010 to 2020; and second, to investigate the association between climate variables and the Multidimensional Poverty Index (MPI).

Research methods: The MPI is measured through equal weighting of 20 indicators. A pooled ordinary least squares regression was used to study the relationship between the climate variables and MPI.

Empirical result: The findings indicate that most provinces have experienced a decrease in poverty over the past decade. However, significant inequality persists among provinces, particularly in the eastern regions of Indonesia. Further analysis reveals that temperatures exceeding 25.25 °C may lead to an increase in the MPI, while precipitation exceeding 9.5 mm/day is associated with a decrease in the MPI.

Implications: This study underscores the importance of incorporating climate change concerns, specifically increasing temperatures and unpredictable precipitation, into poverty reduction strategies and highlights the need for region-specific policies to address the multifaceted nature of poverty in Indonesia effectively.

JEL Classification: I32, O10, Q54

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Author Biography

Ira Eka Pratiwi, State Islamic Institute (IAIN) Fattahul Muluk Papua

Faculty of Economics and Business; International Development Cooperation

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