The Effect of Education and Health on Poverty Reduction in Aceh Province, Indonesia: Moderating Role of Special Autonomy Fund
https://doi.org/10.56225/ijfeb.v1i4.78
Keywords:
education, health, special autonomy fund, povertyAbstract
Aceh is the highest poverty rate among other provinces on Sumatra Island, and this condition has been going on for 20 years (2002-2021). Poverty that lasts a long time can result in the inheritance of poverty to the next generation so that it can give rise to groups of people who are always poor, which bring various problems. To overcome the problem, the central government grants special autonomy funds expected to reduce poverty in Aceh Province by strengthening the education and health sectors. Many previous studies have examined education and health as determinants of poverty. However, there was still limited research using special autonomy funds as a moderating variable. Therefore, the authors are motivated to fill the gap in research related to special autonomy funds as a moderating variable on the effect of education and health on poverty in Aceh Province. This study aims to investigate the role of special autonomy funds in moderating education and health on poverty using panel data for 2010-2021 in 23 districts/cities in Aceh Province, Indonesia. Analysis using MRA concluded that education had no significant effect, while health negatively affected the poverty rate. Furthermore, special autonomy funds are significant in moderating education and health on poverty. So, to reduce poverty, special autonomy funds can focus more on the education and health sectors. It is recommended that the government still utilize special autonomy funds that focus on supporting both programs, increasing public education and health, since special autonomy funds are proven to strengthen the effect of those two sectors in poverty reduction
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