ORIGINAL ARTICLE
THE IMPACT OF THE SURAMADU BRIDGE ON RURAL POVERTY IN KABUPATEN BANGKALAN, EAST JAVA, INDONESIA
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Economic Science, Brawijaya University, Indonesia
Online publication date: 2019-12-31
Economic and Regional Studies 2019;12(4):353-361
KEYWORDS
TOPICS
ABSTRACT
Subject and purpose of work: This research was conducted to measure the influence of the Suramadu
Bridge on the reduction of rural poverty and to determine the impact of production factors such as
physical capital, natural capital, human capital and financial capital on poverty before and after the
Suramadu Bridge began operating in Kabupaten Bangkalan. Materials and methods: This study adapted the model used by Nashwari et al (2017) which was
analysed applying Ordinary Least Square (OLS). The data from Village Potential 2007 and 2017 was
used in the research. Results: Many production factors in the village did not have a significant effect on the poverty reduction
before the Suramadu Bridge began operating. After the Suramadu Bridge opened, it has had a significant
negative impact on poverty. The number of farmers, rice fields, non-agricultural activities, superior
products, skills facilities and credit facilities has a significant positive effect on the reduction of the
poverty level. Conclusions: The existence of the Suramadu Bridge has increased the influence of production factors in
the villages on the poverty reduction in Kabupaten Bangkalan.
ACKNOWLEDGEMENTS
Acknowledgements
This research was funded by the Centre for
Development, Education, and Training of Planners
(Pusbindiklatren) at the National Development
Planning Agency (Bappenas) with the permission of
the Kabupaten Bangkalan Government, and guidance
from the Faculty of Economics and Business,
Brawijaya University, Indonesia. The author would
like to thank the Head of Pusbindiklatren Bappenas,
the Regent of Bangkalan, and the Dean of FEB UB, for
the help and support given.
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