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DETERMINAN KEMISKINAN DI PULAU JAWA PERIODE 2014-2023
This study aims to analyze the influence of the Human Development Index (HDI), Foreign Direct Investment (FDI), Labor Force Participation Rate (LFPR), and population as a control variable on poverty levels in Java Island. The analysis was conducted using panel data regression with a Fixed Effect Model approach to capture variations across provinces and over time. The findings indicate that HDI has a negative and significant effect on poverty, implying that improvements in education, health, and living standards effectively contribute to reducing poverty. Meanwhile, FDI does not show a significant effect on poverty, suggesting that foreign investment has not been fully optimal in supporting poverty reduction or has not yet created inclusive economic benefits for the poor. LFPR also does not demonstrate a significant effect, indicating that increased labor participation has not been sufficiently followed by improvements in job quality and income levels. Population as a control variable does not significantly affect poverty, although theoretically it remains related to demographic and economic dynamics. Overall, this study highlights that human capital quality is the most crucial factor in reducing poverty in Java Island. These findings imply that development policies should focus more on strengthening human development through improvements in education, health services, and community welfare in order to support sustainable poverty reduction.
FAKULTAS EKONOMI DAN BISNIS ISLAM, UIN SUNAN KALIJAGA YOGYAKARTA
NIM.: 21108010110 Achmad Syafrizal Choiri
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