Title: The Dynamic Analysis on Impacts of Education against Poverty Reduction
Authors: Sri Herianingrum, Sri Iswati, Muslich Anshori
Affiliations: Postgraduate School Universitas Airlangga Surabaya, Indonesia
Publisher: Atlantis Press
Abstract
The role of education in poverty reduction is very important. If a person does not have sufficient education and comes from an unfortunate family, it is hard for them to find a decent job that can improve the welfare of their family. This can be compared with a person coming from a poor family but having adequate education; it will be easier for them to find decent work. This research examines the dynamic relationship between education and poverty reduction using a co-integration and causality test using Stata. The long-term relationship between the variables for a case study in Indonesia with cointegration explains that, in the long run, the variables of education and poverty do not affect each other. Further data for the case in the context of Malaysia shows that in the long-term, education and poverty variables are co-integrated or affect each other. The other test is the relationship between the variables for the case in Indonesia with a Granger Causality test, which can be concluded that the poverty variables affect the education variables, and vice versa. Based on these results, we can explain that there are two way that the relationship between poverty and education works. The results of the next data set is for the case in Malaysia. We obtained poverty test results that do not affect the education variables and education variables that do affect the variable of poverty. It can be concluded that there is a one-way relationship from education to poverty.
Keywords: poverty; cointegration test; causality test.
Sources: https://www.atlantis-press.com/proceedings/icpsuas-17/25891250
