Abstract:

The present study aimed to investigate the impact of gross regional domestic product (GRDP), general allocation funds (GAF), population, government spending on the education and health section, and foreign direct investment (FDI) on poverty in several regions in Indonesia. Panel Data Regression analysis techniques were used to process the quantitative data, and the Fixed Effect Model was chosen as the best model. This research used time series and cross-section data in 20 provinces in Indonesia, covering a period between 2010 and 2022. The results found that GRDP, GAF, government spending on health, and FDI negatively influence poverty alleviation. On the other hand, population positively affects poverty, while education expenditure does not influence poverty. The current research focused more on the decentralized funds in Indonesia's archipelago-shaped region, which come from cultural differences, differences in human resources, and different natural resources in each region that contribute to determining poverty.

Keywords:

Decentralization Funds, Fiscal Policy, Poverty, Panel Data Regression.

How to Cite:

Nano Prawoto and Agus Tri Basuki. Can Decentralized Funds Overcome the Problem of Poverty in Indonesia?. [ref]: vol.22.2024. available at: https://refpress.org/ref-vol22-a19/