DETERMINAN TINGKAT KEMISKINAN DI 15 PROVINSI TERMISKIN DI INDONESIA

Siti Alfajriyani, S.E., NIM.: 22208012010 (2024) DETERMINAN TINGKAT KEMISKINAN DI 15 PROVINSI TERMISKIN DI INDONESIA. Masters thesis, UIN SUNAN KALIJAGA YOGYAKARTA.

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Abstract

Poverty is a significant social problem, affecting the welfare of millions of people around the world. The high poverty rate is a major challenge in the development of a country. This study aims to analyze the effect of economic growth, unemployment, government spending, and the Human Development Index (HDI) on poverty rates in the 15 poorest provinces in Indonesia during the period 2014-2023. The use of these variables comprehensively represents the economic, social, and political dimensions that affect people’s welfare. Using the Generalized Method of Moments (GMM), the results of this analysis indicate that economic growth and unemployment do not have a significant effect on poverty rates, either in the short or long term. Government spending has a significant negative effect in the short term but is not significant in the long term. This indicates the limited effectiveness of fiscal policy in the long term. HDI shows a significant positive effect on poverty rates, both in the short and long term. This positive effect is due to the lack of comprehensive and specific development policies for vulnerable groups. Therefore, to accelerate the reduction in poverty rates, an integrated policy is needed, not only focusing on increasing HDI, but also on improving the quality of education, access to health, and community empowerment, especially in areas with high poverty rates.

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