GRDP Per Capita, Human Development Index, Open Unemployment Rate, Regional Expenditure, and Poverty in East Java Province

Meilita Arini Falah, Farida Rahmawati

Abstract


Poverty is one of the goals of Indonesia's development program and is stated in the first point of the SDGs. East Java Province has one of the largest poor population in Indonesia, and reducing poverty is a key component of the development strategy aimed at improving people's welfare. The aim of this study is to ascertain the effect of GRDP per capita, Human Development Index (HDI), Open Unemployment Rate, and regional expenditure in East Java Province in 2012-2022, so that through this research it is expected to be a reference or policy-making decision in poverty alleviation efforts. This study makes use of panel data from East Java Province's 38 districts and cities from 2012 to 2022. Research data information was obtained from BPS and Directorate General of Fiscal Balance (DJPK). The analysis method used is quantitative with Error Correction Model (ECM) regression analysis technique and data processed using E-views 12. This study showed that GRDP per capita, HDI, unemployment, and regional expenditure simultaneously affects poverty in East Java Province. It partially, GRDP per capita and HDI have a negative effect on poverty, in the long and short-term, unemployment in the long-term has a positive effect on poverty, but in the short term shows no effect on poverty, while regional expenditure have no effect on poverty, either long and short-term in East Java Province.


Keywords


Poverty, GRDP per capita, Human Development Index, Open Unemployment Rate, Regional Expenditure

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DOI: https://doi.org/10.18196/jesp.v25i1.21327

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