Analysis of Economic Improvement to Reduce Poverty in 2016-2020

Dewi Fatmasari(1), Dikdik Harjadi(2), Abas Hidayat(3*)

(1) Institut Agama Islam Negeri Syekh Nurjati Cirebon, Indonesia
(2) Universitas Kuningan, Indonesia
(3) Sekolah Tinggi Ilmu Kesehatan Cirebon, Indonesia
(*) Corresponding Author


Being helpless, unwelcome, and lacking a sense of freedom are the three characteristics of poverty. A country that is said to be prosperous can be seen from high economic growth. Economic growth influences reducing the problem of poverty. The lower the level of poverty will cause various kinds of socio-economic problems in a country. This study aims to find the direct and indirect effect of the independent variables, namely the effect of the General Allocation Fund (DAU), Regional Original Income (PAD), and Special Allocation Fund (DAK) on Poverty through Economic Growth. The research is a quantitative study using the regression analysis method by combining cross-section and time series data using Eviews 9.0 Software. This study took the object of research in 29 regencies in West Java Province for the period 2016 - 2020. Panel data source from the provincial annual report, Director General of Balance, Ministry of Finance, West Java BPS. The results of the study show that general allocation funds have a significant effect on economic growth. Special allocation funds have a significant effect on economic growth. However, local revenue does not have a significant effect on economic growth. This study contributes that the economic improvement plays an important role in reducing poverty.


Balance Fund; Economic Growth; Poverty

Full Text:



Ahmad, F., Draz, M. U., Su, L., Ozturk, I., Rauf, A., & Ali, S. (2019). Impact of FDI Inflows on Poverty Reduction in the ASEAN and SAARC Economies. Sustainability, 11(9), 2565.

Avdikos, V., & Merkel, J. (2020). Supporting open, shared and collaborative workspaces and hubs: recent transformations and policy implications. Urban Research & Practice, 13(3), 348–357.

Bray, R., de Laat, M., Godinot, X., Ugarte, A., & Walker, R. (2020). Realising poverty in all its dimensions: A six-country participatory study. World Development, 134, 105025.

Canavire-Bacarreza, G., Martinez-Vazquez, J., & Yedgenov, B. (2020). Identifying and disentangling the impact of fiscal decentralization on economic growth. World Development, 127, 104742.

Chambers, R. (2007). Participation and Poverty. Development, 50(2), 20–25.

Collin, M., & Weil, D. N. (2020). The Effect of Increasing Human Capital Investment on Economic Growth and Poverty: A Simulation Exercise. Journal of Human Capital, 14(1), 43–83.

Coscieme, L., Mortensen, L. F., Anderson, S., Ward, J., Donohue, I., & Sutton, P. C. (2020). Going beyond Gross Domestic Product as an indicator to bring coherence to the Sustainable Development Goals. Journal of Cleaner Production, 248, 119232.

Dhrifi, A., Jaziri, R., & Alnahdi, S. (2020). Does foreign direct investment and environmental degradation matter for poverty? Evidence from developing countries. Structural Change and Economic Dynamics, 52, 13–21.

Erlando, A., Riyanto, F. D., & Masakazu, S. (2020). Financial inclusion, economic growth, and poverty alleviation: evidence from eastern Indonesia. Heliyon, 6(10), e05235.

Folarin, O., & Adeniyi, O. (2020). Does Tourism Reduce Poverty in Sub-Saharan African Countries? Journal of Travel Research, 59(1), 140–155.

Guru, B. K., & Yadav, I. S. (2019). Financial development and economic growth: panel evidence from BRICS. Journal of Economics, Finance and Administrative Science, 24(47), 113–126.

Jamieson, L., & van Blerk, L. (2022). Responding to COVID-19 in South Africa – social solidarity and social assistance. Children’s Geographies, 20(4), 427–436.

Khan, S. A. R. (2019). The nexus between carbon emissions, poverty, economic growth, and logistics operations-empirical evidence from southeast Asian countries. Environmental Science and Pollution Research, 26(13), 13210–13220.

Kwilinski, A., Vyshnevskyi, O., & Dzwigol, H. (2020). Digitalization of the EU Economies and People at Risk of Poverty or Social Exclusion. Journal of Risk and Financial Management, 13(7), 142.

Leal Filho, W., Brandli, L. L., Lange Salvia, A., Rayman-Bacchus, L., & Platje, J. (2020). COVID-19 and the UN Sustainable Development Goals: Threat to Solidarity or an Opportunity? Sustainability, 12(13), 5343.

Liu, Y., Martinez-Vazquez, J., & Wu, A. M. (2017). Fiscal decentralization, equalization, and intra-provincial inequality in China. International Tax and Public Finance, 24(2), 248–281.

Mallick, J., & Fukumi, A. (2021). Globalisation and regional income growth disparity in India and the People’s Republic of China (PRC). Indian Growth and Development Review, 14(2), 172–198.

Manzoor, F., Wei, L., Asif, M., Haq, M. Z. ul, & Rehman, H. ur. (2019). The Contribution of Sustainable Tourism to Economic Growth and Employment in Pakistan. International Journal of Environmental Research and Public Health, 16(19), 3785.

Moutinho, V., Madaleno, M., & Elheddad, M. (2020). Determinants of the Environmental Kuznets Curve considering economic activity sector diversification in the OPEC countries. Journal of Cleaner Production, 271, 122642.

Nachrawi, G., Robekha, J., & Fitrianingtyas Sukarno, E. (2022). Tinjauan Yuridis Pemberian Izin Kegiatan Penanaman Modal Dalam Persfektif Otonomi Daerah. Fundamental: Jurnal Ilmiah Hukum, 11(1), 14–25.

Nisak, S. S., & Sugiharti, L. (2020). Gender inequality and women poverty in Indonesia. International Journal of Innovation, Creativity and Change, 11(9), 375–387.

Omar, M. A., & Inaba, K. (2020). Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis. Journal of Economic Structures, 9(1), 37.

Onafowora, O., & Owoye, O. (2019). Public debt, foreign direct investment and economic growth dynamics. International Journal of Emerging Markets, 14(5), 769–791.

Purwaningsih, F., Zumaeroh, Z., Purnomo, S. D., Adhitya, B., Retnowati, D., Winarto, H., & Kencana, H. (2022). Pengaruh Pengelolaan Alokasi Dana Desa terhadap Indikator Ekonomi di Provinsi Jawa Tengah. MidYear National Conference and Call for Paper, 1(01).

Stoica, O., Roman, A., & Rusu, V. D. (2020). The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries. Sustainability, 12(3), 1186.

Surya, B., Menne, F., Sabhan, H., Suriani, S., Abubakar, H., & Idris, M. (2021). Economic Growth, Increasing Productivity of SMEs, and Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 20.

Wang, J., Wang, W., Ran, Q., Irfan, M., Ren, S., Yang, X., Wu, H., & Ahmad, M. (2022). Analysis of the mechanism of the impact of internet development on green economic growth: evidence from 269 prefecture cities in China. Environmental Science and Pollution Research, 29(7), 9990–10004.

Wilantari, R. N., Latifah, S., Wibowo, W., & Al Azies, H. (2022). Additive mixed modeling of impact of investment, labor, education and information technology on regional income disparity: An empirical analysis using the statistics Indonesia dataset. Data in Brief, 45, 108619.



  • There are currently no refbacks.

Copyright (c) 2022 Dewi Fatmasari, Dikdik Harjadi, Abas Hidayat

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

UIN Sunan Gunung Djati

Kota Bandung, Jawa Barat
Handphone: +6285961137790


Lisensi Creative Commons

Khazanah Sosial  are licensed under Attribution-ShareAlike 4.0 International

Click Her For See Stats