Determinants of Poverty in North Sumatra in 2017-2021 using Panel Data Regression Analysis Method

Madeline Elfriede; Dwi Ari Suryawan

doi:10.4590/jarsic.v2i2.22

Authors

Madeline Elfriede
Dwi Ari Suryawan

DOI:

https://doi.org/10.4590/jarsic.v2i2.22

Keywords:

Poverty, North Sumatera, HDI, GRDP, Unemployment rate, Panel Data

Abstract

Poverty is a common problem faced by developing countries. Poverty itself is defined as the inability of a person to meet basic human needs. North Sumatra Province shows a poverty percentage of around 8-9 percent, which is still far from the target of sustainable development in 2030. Therefore, studies on poverty still need attention. This research uses panel data regression method, which is a combination of cross section and time series data. The individuals studied were districts/cities in North Sumatra Province with periods starting from 2017 to 2021. Based on the results of the study, it was found that Gross Regional Domestic Income (GRDP) and Open unemployment rate had an effect on reducing poverty onNorth Sumatra in 2017 -2021, while the Human Development Index (HDI) has no significant effect on poverty in North Sumatera.

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