Abstract
ABSTRACT The issue of poverty is still a strategic development issue carried out by the Bali Provincial Government. The poverty reduction efforts have been carried out by the regencies/cities of Bali Province with various development programs, but the number of poor people still shows that there is a level of poverty inequality between regencies/cities in Bali Province. This study aims to examine and analyze the influence of social and economic factors on poverty levels in the Bali Province, Indonesia. The social factors in question are population density, unemployment rate, education, and life expectancy. While several economic factors studied included investment, income distribution, and contribution of the agricultural sector. The data in this study are panel data covering socio-economic data and poverty levels in nine regencies/cities in Bali Province during the period 2007-2017. Data analysis was carried out with a quantitative approach using panel data multiple regression methods and equipped with descriptive analysis. The results of the study showed that education, investment, and the contribution of the agricultural sector has a negative effect on poverty levels. Population density, unemployment rate, life expectancy, and income distribution has a positive effect on poverty levels. Suggestions to policy makers, first, the regencies with low investment levels (Bangli, Karangasem, and Jembrana Regencies) to make innovative breakthrough efforts to attract investors to invest according to the potential of each region to support the sustainable development of Bali; and second, the consistency of pro-poor principles of social assistance spending policies. KEY WORDS Poverty level, population density, unemployment rate, education, life expectancy, investment, income distribution, contribution of agricultural sector.
Highlights
Poverty alleviation has become a priority agenda in the policy framework in many countries as well as international organizations which is a commitment in the Millennium Development Goals (MDGs) which ended in 2015, and continues to the Sustainable Development Goals (SDGs) program
According to the results of the analysis, the role of the variable population density, unemployment, education, life expectancy, investment, income distribution, and contribution of the agricultural sector can explain the dependent variable poverty rate of 88.7 percent, while the remaining 11.3 percent is explained by other variables outside the unexamined model or other variables not included in the research model
Based on the results of the descriptive analysis and discussion that has been described, it can be concluded that education, investment, and the contribution of the agricultural sector have a negative effect on the level of poverty in Bali Province
Summary
Poverty alleviation has become a priority agenda in the policy framework in many countries as well as international organizations which is a commitment in the Millennium Development Goals (MDGs) which ended in 2015, and continues to the Sustainable Development Goals (SDGs) program. From the reality, development in order to improve economic and social living standards depends on the role of government (expenditure allocation policy). Based on this background, the purpose of this study is to find out and analyze the influence of social and economic factors on poverty levels in the Province of Bali, Indonesia. Development is interpreted as a multidimensional process that includes a variety of fundamental changes to the social structure, attitudes of society, and national institutions while continuing to pursue accelerated economic growth, handling income inequality, and alleviating poverty (Todaro, 2011). Todaro (2011) emphasized that there are at least three basic components/core values to understand the real meaning of development, namely sustenance, self-esteem, and freedom
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