Effect of Diversification of Business and Economic Value on Poverty in Batubara Regency
DOI:
https://doi.org/10.18502/kss.v3i14.4325Abstract
The purpose of the research to find the most consistent factor of economic diversification in increasing economic value and reduce poverty in Batubara Regency. How fishing households performs and having better in livelihood strategy. The 260 sample of fishing household in Batubara Regency were used to investigate the research, and Structural Equation Modeling (SEM) model is used to estimate interaction related to fishing and non-fishing activities to economic value and poverty. Diversification on fishing is significant difference compared to non-fishing diversification, these results indicate that coastal communities are still heavily dependent on the businesses involved in fishing or coastal related activities. Wives work are more significantly than premises wife does not work in maintaining household which are not deeply falling down to poverty situation. Wives are still needed to increase husband’s income. We recommend that the wife is looking for alternatives beyond fishing activities. Wife does not work and child work fishing more significant compared with his wife is not working and child work non fishing. These results indicate that the work of children who performed very profitable if working outside of non fishing activities. Networking is insignificant compared to networking poverty. These results indicate that the networking activities undertaken by coastal communities are not very effective in increasing income or reducing poverty. Networking should be done with empowerment between fishermen and non-fishermen who support each other.
Keywords: diversification of business, economic value, networking and poverty
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