The Effect of Human Development Index (HDI), Inequality and Consumption on Poverty Levels in All Provinces in Indonesia

This study aims to analyze the effect of human development index (HDI), income inequality, and consumption on Indonesia’s poverty rate for 2018-2022. The approach used is quantitative with statistical panel data analysis method using 3 model approaches namely CEM, FEM, and REM. The selected model is...

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Main Authors: Abdullah, Muhammad Ghafur Wibowo
Format: Article
Language:English
Published: Universitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis 2024-12-01
Series:JIET (Jurnal Ilmu Ekonomi Terapan)
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Online Access:https://e-journal.unair.ac.id/JIET/article/view/59249
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author Abdullah
Muhammad Ghafur Wibowo
author_facet Abdullah
Muhammad Ghafur Wibowo
author_sort Abdullah
collection DOAJ
description This study aims to analyze the effect of human development index (HDI), income inequality, and consumption on Indonesia’s poverty rate for 2018-2022. The approach used is quantitative with statistical panel data analysis method using 3 model approaches namely CEM, FEM, and REM. The selected model is the Fixed Effect Model as a result of the Chow and Hausman tests. The results showed that HDI and inequality variables had no significant effect on the poverty rate. Meanwhile, the consumption variable has a negative and significant effect on poverty. Simultaneously, all independent variables have a significant effect on the dependent variable. This research is expected to provide input for the government in formulating poverty alleviation policies in Indonesia by focusing more on reducing public consumption. Research limitations on secondary data in aggregate so that the results are less representative for each province.
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publisher Universitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis
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spelling doaj-art-b3ab24ce116f41eaad53d744726aa9052025-08-20T01:56:31ZengUniversitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan BisnisJIET (Jurnal Ilmu Ekonomi Terapan)2541-14702528-18792024-12-019225726910.20473/jiet.v9i2.5924957415The Effect of Human Development Index (HDI), Inequality and Consumption on Poverty Levels in All Provinces in IndonesiaAbdullah0https://orcid.org/0009-0004-6575-2614Muhammad Ghafur Wibowo1https://orcid.org/0000-0003-4921-7828Master of Sharia Economics, UIN Sunan Kalijaga, Yogyakarta, IndonesiaMaster of Sharia Economics, UIN Sunan Kalijaga, Yogyakarta, IndonesiaThis study aims to analyze the effect of human development index (HDI), income inequality, and consumption on Indonesia’s poverty rate for 2018-2022. The approach used is quantitative with statistical panel data analysis method using 3 model approaches namely CEM, FEM, and REM. The selected model is the Fixed Effect Model as a result of the Chow and Hausman tests. The results showed that HDI and inequality variables had no significant effect on the poverty rate. Meanwhile, the consumption variable has a negative and significant effect on poverty. Simultaneously, all independent variables have a significant effect on the dependent variable. This research is expected to provide input for the government in formulating poverty alleviation policies in Indonesia by focusing more on reducing public consumption. Research limitations on secondary data in aggregate so that the results are less representative for each province.https://e-journal.unair.ac.id/JIET/article/view/59249povertyinequalityconsumptionhuman development index
spellingShingle Abdullah
Muhammad Ghafur Wibowo
The Effect of Human Development Index (HDI), Inequality and Consumption on Poverty Levels in All Provinces in Indonesia
JIET (Jurnal Ilmu Ekonomi Terapan)
poverty
inequality
consumption
human development index
title The Effect of Human Development Index (HDI), Inequality and Consumption on Poverty Levels in All Provinces in Indonesia
title_full The Effect of Human Development Index (HDI), Inequality and Consumption on Poverty Levels in All Provinces in Indonesia
title_fullStr The Effect of Human Development Index (HDI), Inequality and Consumption on Poverty Levels in All Provinces in Indonesia
title_full_unstemmed The Effect of Human Development Index (HDI), Inequality and Consumption on Poverty Levels in All Provinces in Indonesia
title_short The Effect of Human Development Index (HDI), Inequality and Consumption on Poverty Levels in All Provinces in Indonesia
title_sort effect of human development index hdi inequality and consumption on poverty levels in all provinces in indonesia
topic poverty
inequality
consumption
human development index
url https://e-journal.unair.ac.id/JIET/article/view/59249
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