Erna Andriaswati, 7111417063 (2021) DETERMINANTS OF POVERTY RATES IN PAPUA PROVINCE 2011 - 2019. Under Graduates thesis, Universitas Negeri Semarang.

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Abstract

Indonesia is one of the countries with a high poverty rate. As of 2019, the poverty rate in Indonesia has not yet reached the target. One of the provinces with the highest poverty rate is Papua Province. Throughout 2011 to 2019 Papua Province always occupied the province with the highest poverty rate in Indonesia. When compared with the national poverty average, the poverty rate in Papua Province is quite far. In 2019 the average national poverty rate was 9.41%. Meanwhile, the poverty rate in Papua Province in the same year was at 27.53%. This study aims to identify the factors that influence the level of poverty in Papua Province. The independent variables in this study include economic growth, balancing funds, capital expenditures, life expectancy, and the average length of schooling. The type of data in this study is secondary data. The data collection technique used is literature study. The data used is sourced from the publications of the Central Statistics Agency and the Directorate General of Fiscal Balance. The data obtained were then analyzed using panel data regression analysis method using the Random Effect Model (REM). The model was selected based on the Chow Test, Hausman Test, and LM Test. Furthermore, to overcome the problem of classical assumption testing is done using the WLS (Weighted Least Square) method on the GLS (Generalized Least Square). The results of this study indicate that economic growth has a positive but not significant effect on poverty levels. The balancing fund has a negative and significant effect on the poverty level. Capital expenditures and life expectancy also have a positive but not significant effect on the poverty level. Meanwhile, the average length of schooling has a negative and significant effect on the poverty level.

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