The Impact of The General Allocation Fund (DAU) on Poverty Levels in Indonesia:

Ratu Munawarah; Sri Rahayu; Rico Wijaya

doi:10.63922/ijebir.v5i04.4244

Ratu Munawarah Universitas Jambi
Sri Rahayu Universitas Jambi
Rico Wijaya Universitas Jambi

DOI: https://doi.org/10.63922/ijebir.v5i04.4244

Keywords: General Allocation Funds, Poverty, Per Capita GDP, Human Development Index, Direct Expenditure, Panel Data, Jambi Province.

Abstract

This research aims to analyze the impact of the General Allocation Fund (DAU) on the poverty level in the districts/cities of Jambi Province for the period 2022-2024. In addition to DAU, this study also examines the role of variables such as per capita Gross Regional Domestic Product (PDRB), the Human Development Index (IPM), and local government direct spending as factors influencing poverty. The research employs a quantitative approach utilizing panel data that encompasses 11 districts/cities in Jambi Province over six years, resulting in 66 observation units. The data is sourced from the Central Statistics Agency (BPS) of Jambi Province, the Directorate General of Financial Balance (DJPK), and the Directorate General of Regional Finance (DJKD). The analysis method applied is panel data regression, with the selection of the best model conducted through Chow tests, Hausman tests, and Lagrange Multiplier tests. Data processing is carried out using Stata 17 software. The research findings are expected to demonstrate that DAU, per capita PDRB, IPM, and direct spending have a negative and significant effect on poverty levels, both partially and simultaneously. These findings are anticipated to provide policy recommendations for local governments to optimize the use of transfer funds to accelerate poverty alleviation in Jambi Province.

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The Impact of The General Allocation Fund (DAU) on Poverty Levels in Indonesia

A Study of Districts and Cities in Jambi Province, 2022–2024

Abstract

References