Analysis of Factors Affecting Poverty in North Sumatra Province (Period 2015-2020)

Abstract

This study aims to determine and analyze the effect of economic growth, human development index, population growth, and unemployment rate on poverty in North Sumatra Province. The type of data used in this research is the type of quantitative data with secondary data. The object of this research is all regencies/cities in North Sumatra Province which consists of 33 regencies/cities. This study uses panel data, which combines time series and cross section data for 6 years, from 2015 to 2020. The data analysis method used in this study is the panel data regression analysis method with the Eviews10 analysis tool. The results of the research based on panel data regression analysis method show that economic growth, human development index, population growth, and unemployment rate have a simultaneous effect on poverty. Partially, economic growth has a negative and significant effect on poverty, the human development index has a negative and significant effect on poverty, population growth has a positive and significant effect on poverty, and the unemployment rate has a positive and significant effect on poverty. The policy implication in this research is that the government is expected to be more serious in creating an investment climate by developing Special Economic Zones (SEZ) and Industrial Estates (KI), improving government performance through the Family Hope Program (PKH), implementing Family Planning (KB) programs and delaying the age of birth. marriage to suppress population growth, and the use of Pre-Employment Cards to reduce unemployment. Keywords: Economic Growth, Human Development Index,Population Growth, Unemployment Rate, Poverty