The Factors Influence the Poverty in the Districts of West Nusa Tenggara Province, Indonesia

Abstract

The aims of this research is to investigate and analyze the effects of economic growth, average length of schooling, open unemployment rate, and total population on the poverty rate in the districts or cities of West Nusa Tenggara Province. The method used is panel data regression using a combination of time series data from 10 districts/cities and cross-sectional data from 2016 to 2022. There are three models in panel data regression: PLS, FEM, and REM. Based on the Hausman test, the model used in this study is the Random Effect Model (REM). The results of the research indicate that simultaneously, economic growth, education, unemployment, and population significantly affect the poverty rate. Partially, economic growth and average length of schooling have a negative effect, while the population has a positive effect on the poverty rate. However, the open unemployment rate variable does not have a significant effect on the poverty rate.