Agricultural Production and its Implications on Economic
Growth and Poverty Reduction
Darwati Susilastuti1
Abstract:
The objective of the study was to analyze the magnitude of factors affecting Agricultural
Production and its implications on Gross Regional Production (GRP) Growth and Poverty
Reduction.
Panel data from 6 provinces of center production of paddy of Indonesia for 10 years (2007-
2016) were analyzed by Path Analysis method. Productivity of Agricultural Land and
Wetland Area has a very strong relationship with Agricultural Production. The productivity
of Agricultural Land is the dominant factor and has the significant effect on Agricultural
Production.
Agricultural Production has no significant effect on GRP growth rate. Agricultural
Production has not been able to reduce poverty. GRP growth rate has the significant effect
and is the dominant factor for poverty reduction.
Based on the finding of the research, government policy programs for poverty reduction in
rural areas can be done by improving agricultural cultivation technology, the extent of
wetland area, increasing of agriculture-based industries and the provision of poverty
reduction programs budget.
Keywords: Agricultural, GRP, Poverty.
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