REDUCING POVERTY THROUGH SUBSIDIES: SIMULATION OF FUEL SUBSIDY DIVERSION TO NON-FOOD CROPS
Keywords:
Subsidy, poverty, computable general equilibrium, AGEFIS
Abstract
This paper analyzes the impact of fuel subsidy diversion to Non-Food Crops sector on income levels, using AGEFIS; a Computable General Equilibrium model. Then we proceed to apply the Foster-Greer-Thorbecke (FGT) index to measure the indicators of poverty (head count index, poverty gap index and poverty severity index). The simulation result shows the fuel subsidy diversion to Non-Food Crops sector provides a positive impact on increasing household incomes and poverty reduction. Furthermore, the fuel subsidy diversion to Non-Food Crops sector reduces the poverty of rural household, larger than the urban households.
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References
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Norton, R.D., 2004, Agricultural Development Policy: Concept and Experiences. Food and Agricultural Organization and John willey and sons Ltd. West Sussex.
Ravallion, M. dan Datt, G. ,1999, When is Growth Pro-Poor? Evidence from the Diverse Experiences of India»s States. World Bank.
Reyes, Celia M., Alellie B. Sobrevinas, Joel Bancolita and Jeremy de Jesus, 2009, Analysis of the Impact of Changes in the Price of Rice and Fuel on Poverty in the Philippines. Philippine Institute for Development Studies. Discussion Paper Series No. 2009-07 (March, 2009).
Simorangkir, I. dan Adamanti J., 2010, The Roles of Fiscal and Relieving Monetary on Indonesian Economy during the Global Financial Crisis: Using the Approach of Financial Computable General Equilibrium. Bulletin of Monetary Economy and Banking Bank of Indonesia Vol. 13(2): 169-192.
Son, Hyun H., 2004, Measuring the Impact of Price Changes on Poverty. Working Paper International Poverty Centre United Nations Development Programme Number 33 November, 2006.
Stringer, R., 2001, How important are the Non-traditional Economic Roles of Agriculture in Development. Centre for International Economic Studies, Discussion Paper No. 0118, Adelaide University, Adelaide.
Suselo, S. L. dan Tarsidin, 2008, Poverty in Indonesia: The Effect of Growth and the Change of Economy Structure. Bulletin of Monetary Economy and Banking Bank of Indonesia, 11(2): 155-194.
Spencer, M. H., danAmos, O. M. Jr., 1993, Contemporary Economics. New York: Worth Publishers.
Susilowati, S. H., 2008, Strategy Agricultural Demand Led Industrialization from the Perspective of Economical of Work Increase and Farmer Income. Prespektif Peningkatan Kinerja Ekonomi, Research Forum of Agro Economy, Vol. 26 (1) July 2008: 44-57.
Wilson, W. J., 1996, When Work Disappears. New York: Norton.
Word Bank, 2005, The Study of Indonesian Public Outflow: Maximizing New Opportunities. Jakarta: Word Bank.
Yusuf, A. A., Hartono Djoni, and Wawan Hermawan, Y., 2007, AGEFIS: Applied General Equilibrium for Fiscal Policy Analysis. Working Paper in Economics and Development Studies No. 200807. Department of Economics, University of Padjadjaran.
Arndt,C., Jensen, H. T. dan Tarp, F., 1998, Structural Characteristics of the Economy of Mozambique: SAM Based Analysis. http://www.econ.ku.dk/ derg/papers/article.pdf. Accessed on December, 6th 2010.
Basri, F., 2002, The Economy of Indonesian: Challenges and Hopes toward the Increase the Economy of Indonesian. Erlangga, Jakarta.
Bautista, R. M., 2000, Agriculture-Based Development: A SAM Perspective on Central Vietnam. The Developing Economies, 34(1): 112-32.
Bautista, R.M., 2001, Agriculture-Based Development: A Sam Perspective on Central Vietnam. The Developing Economics, 39(1): 112-132.
Bigsten, Arne dan Levin, Jorgen, 2000, Growth, Income Distribution, and Poverty: A Review. Goteborg University Working Paper in Economics, No. 32.
BKFDK-RI (Board of Fiscal Policy Department of Finance of the Republic of Indonesia), 2008, The Development of Computable General Equilibrium Model: Training Module Session I, Center for Economics and Development Studies (CEDS), Faculty of Economics, University of Padjajaran Bandung.
BKFDK-RI (Board of Fiscal Policy Department of Finance of the Republic of Indonesia), 2008a, Applied General Equilibrium Model for Fiscal Policy (AGEFIS): Module of Capacity Development CGE Model Session II, Center for Eonomics and Development Studies (CEDS), Faculty of Economics, University of Padjajaran Bandung.
Bluestone, Barry dan Bennett Harrison, 2000, Growing Prosperity. New York: Houghton Mifflin.
Brady, David., Andrew S. Fullerton., dan Jennifer Moren Cross, 2010, More Than Just Nickels and Dimes: A Cross-National Analysis of Working Poverty in Affluent Democracies. Social Problems, Vol. 57(4) November 2010:559-585.
Eriksson, Ross C, David L. Kaserman, dan John W. Mayo, 1998, Targeted and Untargeted Subsidy Schemes: Evidence from Postdivestiture Efforts to Promote Universal Telephone Service. Journal of Law and Economics, Vol. 41(2) October 1998: 477-502.
FAO, 2008, Soaring Food Prices: Facts, Perspectives, Impact and Actions Required.Paper prepared for the High-Level Conference on World Food Security: The Challenges of Climate Change and Bioenergy, Rome, 3-5 June 2008.
Hafizrianda, Y., 2007, The Impact of Building Agriculture Sector on Income Distribution and Regional Economics in Papua Province: An analysis of Balance System of Economics Social.Ph.D. Dissertation. Bogor: Postgraduate Program, Bogor Agriculture Institute.
Handoko, R., dan Patriadi, P., 2005, The Evaluation of Subsidy Non-Fuel Policy.The Study of Economy and Finance.9(4).
Hills, John, 2004, Inequality and the State. New York: Oxford University Press.
Hung, Nguyen Manh dan Paul Makdissi, 2004, Escaping the Poverty Trap in a Developing Rural Economy. The Canadian Journal of Economics / Revue canadienned»Economique, Vol. 37(1) Feb., 2004: 123-139.
Jansen, H.T. dan F. Tarf, 2004, On The Choice of Appropriate Development Strategy: Inside Gained from CGE Modeling of the Mozambican Economy. Journal of African Economies, 13(3): 446-478.
Kasiyati, Sri, 2010, The Analysis of Subsidy Impact of Fertilizer Price on Production Sector and Household Income Level in Central Java, Journal of Organization and Management, Volum 6 (1), Maret 2010: 28-45.
Lembaga Penelitian IPB, 2002, Studi Perumusan Structural Adjustment Program dan Model Pembangunan Pertanian di Indonesia. Bogor: Lembaga Penelitian, Institut Pertanian Bogor.
Lohmann, Henning, 2009, Welfare States, Labor Market Institutions, and the Working Poor: A Comparative Analysis of 20 European Countries. European Sociological Review 25:489-504.
Maipita, Indra., Mohd. Dan Jantan., dan Nor Azam Abdul Razak, 2010, The Impact ofFiscal Policy toward Economic Performance and Poverty Rate in Indonesia. Bulletin Monetary Economics and Banking: Bank Indonesia, Volume 12 (4), April 2010: 391-424.
Maipita, Indra, 2011, The Effect of Direct Cash Aid (BLT) Distribution Toward Income and Poverty Level in Indonesia. Journal of Economic and Business, Research Institute Gunadarma University, Volume 16 (1), April 2011: 23-36.
Marianti,Ruly dan Wawan Munawar, 2006, Moving Out of Poverty: The Case of Desa Branta Pesisir, Pamekasan Regency. SEMERU Research Institute: Jakarta.
Moller, Stephanie, Evelyne Huber, John D. Stephens, David Bradley, François Nielsen, 2003, Determinants of Relative Poverty in Advanced Capitalist Democracies. American Sociological Review, Vol. 68(1) Feb., 2003: 22-51.
NKAPBN-RI. , 2009, Note of Finance and National Budget, The Fiscal Year 2010.
Norton, R.D., 2004, Agricultural Development Policy: Concept and Experiences. Food and Agricultural Organization and John willey and sons Ltd. West Sussex.
Ravallion, M. dan Datt, G. ,1999, When is Growth Pro-Poor? Evidence from the Diverse Experiences of India»s States. World Bank.
Reyes, Celia M., Alellie B. Sobrevinas, Joel Bancolita and Jeremy de Jesus, 2009, Analysis of the Impact of Changes in the Price of Rice and Fuel on Poverty in the Philippines. Philippine Institute for Development Studies. Discussion Paper Series No. 2009-07 (March, 2009).
Simorangkir, I. dan Adamanti J., 2010, The Roles of Fiscal and Relieving Monetary on Indonesian Economy during the Global Financial Crisis: Using the Approach of Financial Computable General Equilibrium. Bulletin of Monetary Economy and Banking Bank of Indonesia Vol. 13(2): 169-192.
Son, Hyun H., 2004, Measuring the Impact of Price Changes on Poverty. Working Paper International Poverty Centre United Nations Development Programme Number 33 November, 2006.
Stringer, R., 2001, How important are the Non-traditional Economic Roles of Agriculture in Development. Centre for International Economic Studies, Discussion Paper No. 0118, Adelaide University, Adelaide.
Suselo, S. L. dan Tarsidin, 2008, Poverty in Indonesia: The Effect of Growth and the Change of Economy Structure. Bulletin of Monetary Economy and Banking Bank of Indonesia, 11(2): 155-194.
Spencer, M. H., danAmos, O. M. Jr., 1993, Contemporary Economics. New York: Worth Publishers.
Susilowati, S. H., 2008, Strategy Agricultural Demand Led Industrialization from the Perspective of Economical of Work Increase and Farmer Income. Prespektif Peningkatan Kinerja Ekonomi, Research Forum of Agro Economy, Vol. 26 (1) July 2008: 44-57.
Wilson, W. J., 1996, When Work Disappears. New York: Norton.
Word Bank, 2005, The Study of Indonesian Public Outflow: Maximizing New Opportunities. Jakarta: Word Bank.
Yusuf, A. A., Hartono Djoni, and Wawan Hermawan, Y., 2007, AGEFIS: Applied General Equilibrium for Fiscal Policy Analysis. Working Paper in Economics and Development Studies No. 200807. Department of Economics, University of Padjadjaran.
Published
2012-06-29
How to Cite
Maipita, I., Hermawan, W., & Fitrawaty, F. (2012). REDUCING POVERTY THROUGH SUBSIDIES: SIMULATION OF FUEL SUBSIDY DIVERSION TO NON-FOOD CROPS. Buletin Ekonomi Moneter Dan Perbankan, 14(4), 349-366. https://doi.org/10.21098/bemp.v14i4.412
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Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
