HOUSEHOLD IMPACT OF THE COVID-19 PANDEMIC FROM A DEVELOPMENT ECONOMICS PERSPECTIVE – A REVIEW

Bekhzod EGAMBERDIEV

PhD student, Agricultural Markets, Marketing and World Agricultural Trade (Agricultural Markets), Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale), Germany

egamberdiev@iamo.de

Abstract

In terms of the socio-economic crisis, the ravages of a pandemic shock indicate that people from developing countries are likely to be more vulnerable. The same direction of impact could be expected in the case of the COVID-19 pandemic; however, both scale and speed of this pandemic differ from others in the past. Therefore, we can expect causes to be different from those of past crises. Although emerging studies are available, the existing literature offers no systematic analysis of household vulnerability in the prism of development economics. Especially the interlinkages of causes and the relative importance of effects and coping strategies are not yet summarized. Therefore, this study aims to provide a systemic assessment of household effects of COVID-19 and tries to identify casual effects of the consequences, to which it adds policy recommendations. The systematic analysis undertaken in this study is based on a cluster analysis of 150 articles and reports provided in international literature. This study shows that two distinct impacts of the COVID-19 pandemic concern food security and market imbalance, together with socio-economic consequences, which a large number of studies identify as the core of a pandemic. Similarly, risk mitigation strategies such as strengthening farm support, food system resilience, and social protection need to be particularly promoted under COVID-19 conditions. The study also identifies research gaps especially in particularities of health outcomes in different food systems and on different economic development levels.

Keywords: Food security, resilience, pandemic, income, poverty, inequality

JEL classification: Q10, Q11, Q13, Q18

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DOES QUALITY OF LIFE MATTER FOR ACHIEVING SUSTAINABLE DEVELOPMENT GOALS IN INDONESIA?

Ery JAYANTI

Ph.D. Scholar in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Senior Lecturer, Universitas Jabal Ghafur, Sigli, Aceh, Indonesia

ery_jayanti@yahoo.com

Said MUHAMMAD

Professor, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

said@unsyiah.ac.id

B.S NAZAMUDDIN

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

abdjamal@unsyiah.ac.id nazamuddin@unsyiah.ac.id

T. ZULHAM

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

teukuzulham@unsyiah.ac.id

M. Shabri Abd. MAJID*

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

mshabri@unsyiah.ac.id

*Corresponding author

Abstract

To ensure its sustainable development, although it is not legally binding, Indonesia have strongly committed to support the Sustainable Development Goals (SDGs) that have been initiated by the General Assembly of the United Nations since 2015 with the main targets to end poverty, safeguard the planet, and guarantee the peaceful and prosperous lives of all citizens on the globe in 2030. Amidst the strong commitment of the Indonesian government to include the SDGs’ framework in its development agenda, this study empirically examines the extent to which the quality of life has contributed towards achieving the SDGs in Indonesia. Specifically, this study attempts to explore the effect of quality of life on the reduction of poverty and hunger and the increase of access to clean water of the Indonesian across 33 provinces in the country over the period 2010-2017. Using the panel multiple regression approach, the study documented significant positive effects of the income level, tertiary education level, and formal employment status on the reduction on the poverty and hunger index. Additionally, both the tertiary level of education and income positively contributed to the increase in clean water access. These findings shed some lights for the policy-makers to design proper policies for achieving the SDGs agenda through enhancing the citizens’ quality of life so that the target of realizing “Zero Goals” where all Indonesian living without poverty and having sufficient access to clean water could be materialized.

Keywords: Sustainable development goals, Poverty, Hunger index, Clean water access.

JEL classification: I31, I39, O18

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THE EFFECTIVENESS OF HEALTH BUDGET IN REDUCING POVERTY: EVIDENCE IN INDONESIA

IDARYANI

M.Si, Economics and Business Faculty of Universitas Syiah Kuala, Indonesia

idaryaniaceh1@gmail.com

Masbar RAJA

Prof, Economics and Business Faculty of Universitas Syiah Kuala, Indonesia

raja.masbar@unsyiah.ac.id

ALIASUDDIN

Dr, Economics and Business Faculty of Universitas Syiah Kuala, Indonesia

aliasuddin@unsyiah.ac.id

Nasir MUHAMMAD

Dr, Economics and Business Faculty of Universitas Syiah Kuala, Indonesia

nasirmsi@unsyiah.ac.id

Abstract

The purpose of this study is to analyze the effectiveness of health expenditures in reducing poverty in Indonesia. The data used was panel data from three specific autonomous regions: Aceh, Papua, and West Papua, data from 2006-2017. The method of analysis used in the study was the ARDL Panel model. The results of the study show that in the short term, health expenditures o not affect poverty in the autonomous regions. The results from each region showed no short-term effect. Long-term estimates show that health spending can reduce poverty by up to 6 percent assuming cateris paribus. Adjustments of these impacts will occur every 9.6 months. This study recommends that the government increases the health budget so that the poor can get protection and avoid health problems. The study also recommends increased regulation of health expenditures to make it more effective and have an impact in the short term.

Keywords: Health Budget, Poverty, ARDL Panel, Special Autonomy

JEL classification: C23, H51, I38
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