1Padlika Zulfatoni, 2M. Firmansyah
1,2Faculty of Economics and Business, University Of Mataram & Lombok, Indonesia
DOI : https://doi.org/10.47191/ijmra/v7-i05-52Google Scholar Download Pdf
ABSTRACT:
One of the primary goals of any municipality is human development when it comes to regional development. Reducing poverty and improving community welfare and human resources are the primary goals. The poverty rate in NTB Province has dropped dramatically, and the income and economic growth in the area have increased, thanks to the many regional development initiatives that the province has launched. Finding out how local original income, balancing funds, and economic development influence the poverty rate in NTB province is the main objective of this research. Using a battery of tests and regression analysis, we compile a dataset consisting of panel data from ten NTB Province regencies and cities covering the years 2012–2022. The results obtained from this study show that local original funding (PAD) has a significant impact on reducing poverty rates and balancing funds that significantly reduce poverty rates in the NTB province. However, economic growth impacts increasing the poverty rate in NTB province, although not significantly. This may happen because Indonesia's economic growth fluctuates, thus affecting the increase in poverty. Fluctuations occur due to factors such as national economic conditions, supply-demand, government policies, etc. This can affect the economic growth of NTB, and it also impacts the increasing poverty rate in NTB. In addition, the increasing population is one of the factors that contribute to economic fluctuations and the increase of poor people in NTB.
KEYWORDS:Regional Development, Local Original Revenue (PAD), Balancing Fund, Economic Growth, Poverty
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