Ananalysis Of Determinants Of Poverty Rates In Indonesia

Abstract

This study aims to determine and analyze the effect of government spending in this case balancing funds, village funds, infrastructure budgets and inflation on poverty levels through investment variables, economic growth and income inequality. This study uses an explanatory design. The type of data used is panel data which is a combination of data from 33 provinces in Indonesia from 2015 to 2019. The analytical model used in this study is the econometric structural equation model in the Eviews 12 program. The findings reveal that significant negative effect on the poverty level, but indirectly the balancing fund has no significant effect through investment, economic growth and income inequality. Likewise, village funds have no significant direct and indirect effect on poverty levels through investment, economic growth and income inequality. The infrastructure budget has a significant negative effect on the poverty level directly and indirectly has a significant negative effect through investment, economic growth and income inequality. Inflation directly has an insignificant positive effect on the poverty level, indirectly has an insignificant effect through investment, economic growth and income inequality, but inflation directly has a significant positive effect on income inequality.