The relationship of the agricultural sector to the level of poverty in Central Sulawesi Indonesia

Abstract

The agricultural sector plays an important role in providing employment in Indonesia, so it had a very important role in the economy of Central Sulawesi Province. The dominant contribution of the agricultural sector, especially in strengthening food security and alleviating poverty. This research determines the causal relationship of the agricultural sector with the level of poverty in Central Sulawesi Province using time series data from 2008 to 2017. The researched uses the Granger causality analysis with a stationary test, cointegration test, and Granger causality test for the data. This study determined that the level of poverty had a causal relationship with the agricultural sector, but on the contrary, the agricultural sector did not have a causal relationship with the level of poverty. The result is that it is possible to suggest that, if one wanted to reduce the level of poverty in Central Sulawesi Province, one could do so namely by: expanding employment in the agricultural sector, expanding agricultural land, utilizing the agro-industry sector, and stabilizing the prices of agricultural products so that the government needed to pay attention to the agricultural sector.

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