Analysis of the Influence of Economic Growth, Government Expenditure and Investment on the Poverty in North Sumatra Province

Abstract

Poverty is one of the problems that become the center of attention in any country including Indonesia, especially North Sumatra Province. In poverty alleviation, the government is required to supervise supporting policies that can alleviate the poverty level. Factors that can alleviate poverty are economic growth, government expenditure, and investments made. The purpose of this study is to find out and analyze the influence of economic growth, government expenditure, and investment on poverty levels in North Sumatra Province. This type of research is ex post facto and associative. The type of data used is quantitative in the form of secondary data. The population of this study is variable data in districts/cities in North Sumatra Province, namely as many as 33 districts/cities during 2014-2018 and sample withdrawal used is cluster sampling so that the sample as many as 165 observations. The data analysis method used is to use multiple linear regressions using Eviews10.0 software. The results showed economic growth, government expenditure and simultaneous investment negatively and significantly affected the poverty rate in North Sumatra Province with a coefficient of determination (R2) of 0.9938 or 99.38%. Partial economic growth has a negative and significant effect on the poverty rate in North Sumatra Province while government expenditure and investment have an insignificant negative effect on poverty in North Sumatra Province. Keywords: Economic Growth, Government Expenditure, Investment, Poverty Level.