Determinants of the number of impoverished people in Central Java, Indonesia

Abstract

Purpose — This research aims to estimate the impact of the education index, health index, poverty alleviation budget, and purchasing power on the number of impoverished people. Method — This study employs panel data regression, utilizing samples from 35 regencies/cities in Central Java Province with annual data spanning from 2016 to 2022. The data is processed using Eviews 10 software. Result — By using the Fixed Effects Model (FEM) approach, we found that the education index and health index have a positive impact on reducing the number of impoverished people, while the poverty alleviation budget and purchasing power have a negative impact on the number of impoverished people. Novelty — This research adds value by focusing on purchasing power and poverty alleviation budgets, which have been less explored in previous studies. By delving into these aspects, the research provides a deeper understanding of the poverty dynamics in Central Java Province, offering new insights and more targeted solutions to effectively address poverty-related issues.

Keywords

• poverty
• education
• health
• poverty alleviation budget
• purchasing power
• panel data