A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia

<p>The first purpose of this paper is to develop or construct a new human development composite index and applied to measure the performance of human development in the villages of West Seram Regency, Maluku Province. The second, to develop the priority scale of human development for developme...

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Main Authors: Amaluddin Amaluddin, Rukmuin W. Payapo, Abdul A. Laitupa, Mohammad R. Serang
Format: Article
Language:English
Published: EconJournals 2018-03-01
Series:International Journal of Economics and Financial Issues
Online Access:https://www.econjournals.com/index.php/ijefi/article/view/6220
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author Amaluddin Amaluddin
Rukmuin W. Payapo
Abdul A. Laitupa
Mohammad R. Serang
author_facet Amaluddin Amaluddin
Rukmuin W. Payapo
Abdul A. Laitupa
Mohammad R. Serang
author_sort Amaluddin Amaluddin
collection DOAJ
description <p>The first purpose of this paper is to develop or construct a new human development composite index and applied to measure the performance of human development in the villages of West Seram Regency, Maluku Province. The second, to develop the priority scale of human development for development planning. The third, analyzing the effect of HDI’s indicators on poverty level. This paper applies PCA, clustering analysis and panel data regression. PCA method generates index which we called Modified Human Development Index (MHDI). Based on clustering analysis, the number of villages in the high cluster is 6 villages, the medium cluster is 13 villages and low cluster is 14 villages. The modified human development performance has an important role for poverty alleviation and improving the level of people's welfare in the villages. This paper also revealed empirical study that the HDI’s indicators have negative relationships and significant effect on poverty rate.</p><p><strong>Keywords</strong>: Human Development, Poverty, PCA, Clustering, Panel Data, Villages</p><p><strong>JEL Classifications: </strong>C3, C4, O1, I3<strong></strong></p>
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spelling doaj.art-59c1ab530bcd4a4fb12506158f5517a42023-02-15T16:19:13ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382018-03-01823253303218A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, IndonesiaAmaluddin Amaluddin0Rukmuin W. PayapoAbdul A. LaitupaMohammad R. SerangEconomic and Business Faculty of Pattimura University, Maluku, Indonesia<p>The first purpose of this paper is to develop or construct a new human development composite index and applied to measure the performance of human development in the villages of West Seram Regency, Maluku Province. The second, to develop the priority scale of human development for development planning. The third, analyzing the effect of HDI’s indicators on poverty level. This paper applies PCA, clustering analysis and panel data regression. PCA method generates index which we called Modified Human Development Index (MHDI). Based on clustering analysis, the number of villages in the high cluster is 6 villages, the medium cluster is 13 villages and low cluster is 14 villages. The modified human development performance has an important role for poverty alleviation and improving the level of people's welfare in the villages. This paper also revealed empirical study that the HDI’s indicators have negative relationships and significant effect on poverty rate.</p><p><strong>Keywords</strong>: Human Development, Poverty, PCA, Clustering, Panel Data, Villages</p><p><strong>JEL Classifications: </strong>C3, C4, O1, I3<strong></strong></p>https://www.econjournals.com/index.php/ijefi/article/view/6220
spellingShingle Amaluddin Amaluddin
Rukmuin W. Payapo
Abdul A. Laitupa
Mohammad R. Serang
A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia
International Journal of Economics and Financial Issues
title A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia
title_full A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia
title_fullStr A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia
title_full_unstemmed A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia
title_short A Modified Human Development Index and Poverty in the Villages of West Seram Regency, Maluku Province, Indonesia
title_sort modified human development index and poverty in the villages of west seram regency maluku province indonesia
url https://www.econjournals.com/index.php/ijefi/article/view/6220
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