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http://dx.doi.org/10.13106/jafeb.2020.vol7.no12.1205

Infrastructure and Leading Commodity Identification on Poverty Alleviation in Buru Regency, Indonesia  

WAHYUNINGSIH, Tri (Department of Management, Faculty of Economics, Universitas Iqra Buru)
MATDOAN, Arsad (Department of Management, Faculty of Economics, Universitas Pattimura)
SAING, Zubair (Department of Civil Engineering, Faculty of Engineering, Universitas Muhammadiyah Maluku Utara)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.12, 2020 , pp. 1205-1214 More about this Journal
Abstract
The poverty level in Buru Regency is still high, despite the relatively stable economic growth. For this reason, the purpose of this study was to (1) Identify the leading commodity in each district in Buru Regency; (2) Analyze the effect of road infrastructure and leading commodities on poverty. The findings show that the most sparsely populated district is Fena Leisela, with mangoes as the leading commodity. Pineapple, langsat, apple rose, cabbages, cashews, coffee, cashew, melon, and watermelon are the leading products in Air Buaya, Batabual, Waplau, Lolong Guba, Lilialy, Waelata, Namlea, Kaiely Bay, and Waeapo, respectively. Additionally, the results also indicate that road infrastructure and leading commodities have a significant effect on poverty alleviation in Buru Regency. It means that improving infrastructure and increasing leading commodities production reduce poverty in the region. Good road infrastructure can promote connectivity between regions so that it can accelerate and expand economic development. The provision of infrastructure that encourages connectivity will reduce transportation costs and logistics costs to increase product competitiveness and accelerate the economic movement. When the road infrastructure in Buru Regency improves and new roads are built, it can improve transportation access, it will reduce the living cost for the poor and increase income, and open up opportunities for the poor to benefit from economic growth.
Keywords
Poverty; Infrastructure; Leading Commodities; Inclusive Growth;
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