Factors Affecting Poverty in Central Java Province for the Period 2017-2022
Journal Title: International Journal of Multidisciplinary Research and Analysis - Year 2024, Vol 7, Issue 02
Abstract
Poverty is a serious issue that is hard to ignore in many Indonesian provinces, especially the province of Central Java.This study uses secondary data in the form of a datapanel with cross-section 35 districts / cities and time series for 6 years tomeasure four independent variables—the city minimum wage (UMK), open unemployment, the human development index (HDI),and foreign investment—and one dependent variable—the poverty variable (Y). The goal is to determine the factors that affectpoverty in the province of Central Java. This study's data analysis technique is panel data regression with a Fixed Effect Model(FEM) approach, which is handled with version 12 eviews. Because the District Minimum Wage (UMK) variable had a probabilityvalue of 0.0001 < 0.05 and a coefficient value of -5.73000, the study's findings demonstrated that it had a negative and substantialimpact on poverty. With a prob value, the Open Unemployment variable statistically significantly and favorably affects poverty.0.0000 less than 0.05. Furthermore, because the HDI variable has a prob value, research has demonstrated that it significantly andnegatively affects poverty. the HDI's ability to lower the number of people living in poverty (0.0008 < 0.05). However, because theForeign Investment variable has a low value, it was unable to demonstrate that it had an impact on poverty. The results indicatedthat the poverty rate was unaffected by the amount of foreign direct investment, with 0.7696 > 0.05. The study's overall findingsdemonstrate that 56.8% of poverty can be described by the four independent factors, with the remaining 43.2 percent beingexplained by variables not included in the research model.
Authors and Affiliations
Gustina Yusuf*, Mustofa
Keywords
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- EP ID EP729862
- DOI 10.47191/ijmra/v7-i02-03
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