Rural Development Policy and Poverty Alleviation: The Case of Village Funds in Aceh Province, Indonesia
Kebijakan Pembangunan Desa dan Pemberantasan Kemiskinan: Studi Kasus pada Dana Desa di Provinsi Aceh, Indonesia.
View/ Open
Date
2020Author
Syukur, Azmi
Nunung, Nuryartono
Eran, Binenbaum
Metadata
Show full item recordAbstract
Village funds is still a new fiscal policy that was initially launched in 2015
by the seventh president of Indonesia, “Joko Widodo”, as his pilot project. Some villages have
significantly benefited from developments and improvements initiated by the policy. However, it
also has been identified through various investigative analysis that not all village funds
allocations transferred to local governments have been implemented effectively and efficiently.
This research examines the relationship between the village funds allocations and poverty
alleviation in Aceh province, Indonesia. Using a panel data model that provides random-effects
estimations, it concludes the village funds allocations from the period of 2015 to 2018 cannot
reduce the poverty rate in 23 regencies/municipalities in Aceh. Fiscal variables such as government
expenditure and government own revenue have also shown a positive relationship with the poverty
rate.
Furthermore, with fixed-effects estimation, village funds allocations also show the same result of
its relationship with the number of people living in poverty. Meanwhile, one fiscal variable, GDRP
has a negative and significant relationship with the number of people living in poverty. Some
social variables, such as education and population have also had significant and negative effects
on the
poverty rate and the number of people living in poverty.
Collections
- MT - Economic and Management [2878]