Non Food Per Capita Expenditure Can Affect Percentage of Poverty

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Illustration by Feri Fenoria

UNAIR NEWS – One indicator of the success of a country’s development is by increasing economic growth. With high economic growth, it can reduce the amount of unemployment or poverty in the country.

“The poverty condition of a country or region is a reflection of the level of welfare of the population living in the county,” said Chamidah, Lecturer in Mathematics at Faculty of Science and Technology (FST) UNAIR.

Poverty can occur if the level of income cannot meet the expenses needed for the necessities of life. And it turns out, according to the Central Statistics Agency (BPS), it can be influenced by two things, namely per capita expenditure and categorized as food and non-food groups.

Spending per capita according to food and non-food groups, said Chamidah, can be calculated for a month from the consumption of each household, then divided by the number of households in Indonesia.

To elaborate on this problem, Chamidah together with A. Massaid, M. Hanif, and D. Febrianti wrote a scopus indexed journal entitled “Modeling of Proverty Precentage of Non-Food Per Capita Expenditures in Indonesia Using Least Square Spline Estimator”.

In his research, he focuses on non-food expenditure, namely the view of Engel’s Law theory which states that the greater the proportion of non-food expenditure, the better the welfare of society. Conversely, the smaller the proportion of non-food expenditure, reflecting the level of welfare of the community decreased.

“Because the number of poor people tends to change based on per capita spending,” he said.

At the end, he also said, based on the goodness of fit criteria, MSE, it was concluded that the local linear model approach, which is based on the spline estimator, was actually better than the global (parametric) linear approach. Based on the estimation results of the model, he said, it could explain that if the variable expenditure per capita was less than 0.47 million rupiahs, each increase of one million rupiahs per capita non-food expenditure would reduce the percentage of poverty in Indonesia by 68.71 percent.

“So the effect of increasing non-food per capita spending on reducing the percentage of poverty in Indonesia is said to be large if non-food per capita spending is less than 0.47 million rupiah,” he concluded.

Author: Fariz Ilham Rosyidi

Editor: Nuri Hermawan

Link      :

A Massaid, M.Hanif, D. Febrianti, N. Chamidah. 2019.Modeling of Proverty Precentage of Non-Food Per Capita Expenditures in Indonesia Using Least Square Spline Estimator. IOP Conference Series: Materials Science and Engineering 546.

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