Efforts to Emphasize the Poor Population and the Affecting Factors

Imran Setiabudi Sihombing

doi:10.14738/assrj.61.5894

Abstract

This study aims to determine the effect of economic growth, human development index and unemployment rate to suppress the number of poor people in North Sumatra Province for the period of 2013-2017. The data used in this study is secondary data from the publication of statistical data by Badan Pusat Statistik (Central Statistics Agency) of North Sumatra Province. These data are tabulated into a panel data structure, which is a combination of data in the form of time series and cross-section. This study uses data from 33 Regencies / Cities in North Sumatra Province to be analyzed by using the Data Panel Regression Analysis technique with the Fixed Effect approach. Empirical results prove that economic growth variables on poverty have a positive and significant effect, while the human development index and unemployment variables have insignificant effects. These data were tabulated into a panel data structure, which is a combination of data in the form of time series and cross-section. This study uses data from 33 Regencies / Cities in North Sumatra Province to be analyzed by using the Data Panel Regression Analysis technique with the Fixed Effect approach. Empirical results prove that economic growth variables on poverty have a positive and significant effect, while the human development index and unemployment variables have insignificant effects.

Highlights

Poverty arises because of the inability of some people to organize their lives to a level that is considered human
The panel data is a combination of time series and cross-section, this test is beneficial for increasing the degree of freedom, not much attention is given to testing the unit (Breitung and Meyer, 1994 ; Quah, 1994 ; Levin and Lin, 1993 ; Im, Pesaran and Shin, 1997 ; Kao and Chen, 1995a,b) the root and cointegration of panel data at the empirical or theoretical level
Data Panel Regression Test with Fixed Effect Model Method The model estimation in this study uses the pooled least squares method to see economic growth, the development of the human development index, the development of the open unemployment rate influences the number of poor people in North Sumatra. The discussion of this analysis is based on published data that has been formed and has been stated in the theoretical review and specification of the analysis model, an economic analysis will be carried out explaining the meaning of the parameters obtained from the linear regression equation that has been done, looking at whether the parameters it has conformity with economic theory

Summary

Introduction

Poverty arises because of the inability of some people to organize their lives to a level that is considered human. Poverty can result in a high level of inequality in the distribution of income and wealth in both urban and rural areas (Kempe, Hope, & Hope, 2007). This condition causes a decrease in the quality of human resources so that the productivity and income earned is low. In achieving overall development goals, there is a need for increased economic growth and equitable distribution of income In line with these objectives, various development activities have been directed towards regional development, especially in regions that have relatively high poverty rates which continue to increase from year to year

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Conclusion