Ordinal Logistic Regression Model and Biplot Analysis to Determine Factors Influencing Backward Region Status.

Abstract

The functions of State Ministry of Acceleration of Development in Backwards Regions are to formulate national policy in the field of development in backwards region sector, to implement the policy, to organize stated-owned properties or assets, to supervise the implementation of its duty, to submit the evaluation report, suggestion and consideration in its assignment and function to the President. In order to reach these objectives, the government needs to understand the prior concern so development will be effective and efficient. Therefore, it is important to analyze the relevant factors that influence the backward region status. The objective of this research were to determine factors influencing the backward region status to provide good policy and appropriate allocation of assets or fund. Ordinal logistic regression and biplot were used to analyze the status of backward regions with 33 explanatory variables. The explanatory variables identified as significant factors were the percentage of poor people, poverty index, the percentage of malnutrition children under five, live expectancy, the percentage of access to health infrastructure, average number of drop out elementary school students, the percentage of family using electricity, the percentage of rural areas without nonpermanent market, average distance between “kantor desa”(village office) and “kantor kabupaten”(district office), and the percentage of rural areas with critical land. To analyze the regional disparity (between east and west), biplot was implemented and the variables were clustered according to the regional differences.