| Summary: | This research aimed to analyze the impact of economic growth and
income inequality on poverty in 10 regencies/municipalities in North Sumatera
Province during the periode 2002-2009. Related with it, this research attempts to
analyzed the impact of economic growth on income inequality, the impact of
economic growth on poverty, the role of agriculture on poverty, and the role of
mining on poverty.
Finally, analysis will be done to examine whether or not the economic growth in North Sumatera province has been oriented to the poor.
Fixed and random effect model were used to analyze data real income per
capita as a proxy of economic growth, gini ratio as a proxy of income inequality,
head count index, poverty gap index, and poverty severity index as a proxy of
poverty, role of agriculture and role of mining from 10 regencies/municipalities in North Sumatera Province during the periode 2002-2009 obtained from Central
Bureau of Statistics published.
The result shows that economic growth is insignificantly affect income
inequality. Similar results were also obtained when analyzing the impact of
economic growth and the role of mining to poverty. The role of the agricultural
sector is significantly affecting poverty with the value of poverty elasticity to
agriculture is 0.54 against the P0, 0,25 against P1 and 0.29 against P2.
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