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ISSN : 2456-8643

Title:
ECONOMIC GROWTH’S DECOMPOSITION OF AGRICULTURAL HOUSEHOLDS IN KALIMANTAN SELATAN

Authors:
Lina Yuliana , Yusuf Aziz and Nuri Dewi Yanti, Indonesia

Abstract:
The economic growth rate of South Kalimantan over the last decade (2012-2022) is approximately 4.7 percent per year. Although the agricultural sector accounts for only about 11.4% of the total economy of South Kalimantan, the agricultural workforce absorbed is as much as 31.87%. Then there is one important question related to that economic growth, namely 'who' benefits from that economic growth. Thus, this research aims to review the impact of the distribution of economic growth in South Kalimantan during the period of 2012-2022 using the Fields decomposition method based on the dual economic model of Lewis. Additionally, this study also employs multiple linear regression analysis to examine the relationship between various variables, particularly education, farmer demographics, and patterns with the magnitude of economic growth enjoyed by agricultural households assumed to be in the 'low-income' group. This research indicates that in South Kalimantan, agricultural households enjoy approximately 38.5% of economic growth during the period of 2012-2022, through the 'expansion' effect of non-agricultural households (3.28%) and the 'enrichment' effect of agricultural households (35.22%). The study also finds that years of schooling expectation, along with the economic role of the industrial sector and the age of farmers, are statistically significantly related to the magnitude of economic growth enjoyed by agricultural households.

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