The Analysis of Factors Affecting Poverty in the Special Region of Yogyakarta Province 2009-2016

Abstract

Poverty is the biggest problem in Indonesia. Poverty is the inability of a person to meet his needs according to a decent life, but this poverty has different characteristics between regions. This difference is related to the poverty of natural resources, human resources and local institutions. According to BPS (2016), the percentage of poor people in Special Region of Yogyakarta Province is higher than the percentage of poor people in Indonesia. Therefore, poverty is a shared responsibility of both government and society and the role of government is very important in alleviating poverty through regional autonomy by allocating resources owned by the central and regional governments into efforts to overcome poverty. This research aimed to analyze the effect of human development index, gross regional domestic product, public expenditure, and government spending on poverty in the Province of Yogyakarta from 2009-2016. Using secondary data in the form of panel data model. The purpose of this study is expected to analyze how and how much influence the human development index, gross regional domestic product, public spending, government spending on poverty. While the method of analysis used in this study is the method of regression analysis of panel data with the help of software E-views 9. The results of this study indicate that the human development index variables has a negative and significant effect on the poverty level, the gross regional domestic product has a negative and significant effect on the poverty level, the public spending has a positive and no significant effect on the poverty level and government spending has a positive and no significant effect on the level poverty in the Province of Yogyakarta from 2009-2016