Abstract
This study purpose was to determine the impact of village funds allocation and village funds on poverty in districts / cities of Maluku Province, Indonesia. The samples are data panel from fourteen districts / cities in Maluku Province, Indonesia. The data was collected for Statistic Center Agency of Indonesia, Budget Department of Indonesia, Village Ministry of Underdeveloped Local Development and other related institutions. The research results confirm that (1) the village funds allocation of 10% from matching grant were transferred through the Regional Revenue Expenditure Budget has no impact to reduce poverty, and ( 2) village funds from the State Revenue and Expenditure Budget that transferred directly to villages have the potential to reduce poverty levels in districts / cities in Maluku Province, Indonesia Keywords : Village, Fund Allocation, Village Funds, Poverty DOI: 10.7176/JESD/11-12-08 Publication date: June 30th 2020
Highlights
Regional development is an integral part of national development
It shows the results of panel data estimation using the Fixed Impact Model (FEM) technique for 66 observations in districts / cities of Maluku Province, Indonesia
This shows that decrease in number of poor people in districts / cities of Maluku Province, Indonesia does not result from the distribution of village fund allocations, but caused www.iiste.org by rural community empowerment programs in context of poverty alleviation implemented by district / city governments
Summary
Regional development is an integral part of national development. The national development aims to improve economic performance to create jobs and providing a decent life to improve people's welfare. The sufficient natural resources managed by human resources have great potential to achieve the development progress (Nurrohman, R and Arifin Z, 2012). The development in each region will increase economic growth in the area. Economic growth is the development of activities in economy to produce goods and services to increase the community prosperity (Zakaria, S, 2013). The process of economic progress of a region is measured by Gross Regional Domestic Product (GRDP). Higher GRDP in an area means the greater the potential sources of regional income and vice versa, lower GRDP in an area means lower increase poverty
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