Influence of Economic Growth and Inequality of Income to Total Poverty in The Province of West Nusa Tenggara (NTB)

Wira Hendri¹, Lalu Rizal Ihwandi², & Taufan Iswandi³¹University Of Gunung Rinjani
²University Of Gunung Rinjani
³University Of Gunung Rinjani³, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2022.5222

Abstract

This study aims to analyze the effect of economic growth and income inequality on poverty alleviation in the province of West Nusa Tenggara. The research variables used in this study are the variables of economic growth, income inequality and the number of poor people in the province of West Nusa Tenggara. The type of data used in this study is quantitative data in the form of panel data with a time span of January 2018 to December 2020. The data source is obtained from BPS. The writing method uses multiple regression in the form of logarithms. The results of the analysis conclude that the variable economic growth has a significant effect on the development of the number of poor people in the province of West Nusa Tenggara due to the contribution of the balancing fund that dominates the economy in NTB reaching almost 70 percent of total regional income so that economic development is still drawn by the central government.

The income inequality variable has no significant effect on the number of poor people in the province of West Nusa Tenggara. The significant inequality of income towards the number of poor people is due to the development programs carried out by local governments that are not evenly distributed in each region, especially in rural areas.

Keywords: Economic growth, income inequality, number of poor people and multiple regression.

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