| Summary: | This study aims to determine the development of poverty, whether
economic growth increases or decreases income inequality, and to determine the
effect of of growth and income inequality on poverty. Then, it would identify
whether economic growth in the province of DIY has been pro-poor.
The data used is secondary data. It consists of GDP per capita, the Gini
index, and the poverty rate covers all districts in D.I. Yogyakarta Province, the
period of 2002-2009. The methods used are descriptive analysis of poverty trends
and regression analysis with fixed effect model-cross section SUR weighted or
pooled EGLS (cross section-SUR).
The results showed that poverty in the province of Yogyakarta, showed a
declining trend, but there are two districts that showed an increasing trend.
Regression model showed that economic growth is negatively affected by income
inequality elasticity value of 0.45. Economic growth was also negatively affect
the net elasticity of poverty so that poverty to economic growth (0.39) is greater
than its gross elasticity (0.36). Value of Pro-poor growth index (PPGI) of 1.075
indicates that economic growth in Yogyakarta Province is very pro-poor.
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