Does Gross Regional Domestic Product Fully Mediate Poverty Reduction? An Inter-District Analysis in Aceh Province
https://doi.org/10.56225/jmsc.v3i2.333
Keywords:
Poverty, Gross Regional Domestic Product, Fiscal Level, Human Capital, ZakatAbstract
Over the last two decades, Aceh Province has been one of the provinces with a high poverty level that will reduce people's welfare. This study investigates the impact of fiscal level, human capital, and Zakat on poverty in Aceh Province, considering the mediating role of Gross Regional Domestic Product (GRDP). Using panel data regression analysis and path analysis, this study examined data from 23 districts/cities in Aceh from 2010 to 2022. Four models were developed to explore the relationships between variables. The results showed that fiscal level positively affected poverty, whereas human capital and Zakat had negative effects. The fiscal level negatively influences GRDP, whereas human capital and Zakat positively impact it. GRDP demonstrated a significant negative effect on poverty. When all variables were considered together, fiscal level positively affected poverty, while human capital, Zakat, and GRDP showed negative effects. Mediation analysis revealed that GRDP partially mediated the relationship between fiscal level and poverty, with fiscal level negatively affecting GRDP but positively influencing poverty. GRDP also partially mediates the effects of fiscal level, human capital, and Zakat on poverty. These findings suggest that the Aceh Government should focus on effectively managing central government transfer funds and regional revenues to improve public welfare and reduce poverty. This study highlights the complex interplay between fiscal policies, human capital development, zakat distribution, and economic growth in addressing poverty in the Aceh Province. Further research and policy interventions should consider these relationships to develop more effective strategies for poverty reduction in this region.
Downloads
References
Adeleye, B. N., Gershon, O., Ogundipe, A., Owolabi, O., Ogunrinola, I., & Adediran, O. (2020). Comparative investigation of the growth-poverty-inequality trilemma in Sub-Saharan Africa and Latin American and Caribbean Countries. Heliyon, 6(12). https://doi.org/10.1016/j.heliyon.2020.e05631
Aimon, H. (2012). Produktivitas, Investasi Sumber Daya Manusia, Investasi Fisik, Kesempatan Kerja terhadap Kemiskinan dan Pertumbuhan Ekonomi di Indonesia. Jurnal Kajian Ekonomi, 1(1), 209–218.
Arifin, N., & Hendriyani, Y. (2022). PDRB, IPM, dan Kemiskinan di Indonesia. Finansha: Journal of Sharia Financial Management, 3(2), 87–103. https://doi.org/10.15575/fjsfm.v3i2.20947
Arwani, A., Salenussa, S., Widyawati, N., Rahayu, I., Faiz, M. F., Cakranegara, P. A., Aziz, A., & Andiyan, A. (2022). The Development of Economic Potential of People in Pandemic through Earning Zakat Distribution. Journal of Profess. Bus. Review. | São Paulo, 7(2), 1–26. https://doi.org/10.26668/businessreview/2022.v7i2.0414
Awalu Pasholihah, F., & Anwar, A. (2023). Desentralisasi fiskal dan kemiskinan regional di Jawa Timur. Jurnal Kebijakan Ekonomi Dan Keuangan, 98–106. https://doi.org/10.20885/jkek.vol2.iss1.art12
Baskaran, T., & Feld, L. P. (2013). Fiscal Decentralization and Economic Growth in OECD Countries: Is There a Relationship? Public Finance Review, 41(4), 421–445. https://doi.org/10.1177/1091142112463726
Ben Jedidia, K., & Guerbouj, K. (2021). Effects of Zakat on the economic growth in selected Islamic countries: empirical evidence. International Journal of Development Issues, 20(1), 126–142. https://doi.org/10.1108/IJDI-05-2020-0100
Bushashe, M. A., & Bayiley, Y. T. (2023). The effect of fiscal decentralization on economic growth in sub-national governments of Ethiopia: A two-step system general methods of moments (GMM) approach. Public and Municipal Finance, 12(2), 32–42. https://doi.org/10.21511/pmf.12(2).2023.03
Dahliah, D., & Nirwana Nur, A. (2021). The Influence of Unemployment, Human Development Index and Gross Domestic Product on Poverty level. Golden Ratio of Social Science and Education, 1(2), 95–108. https://doi.org/10.52970/grsse.v1i2.84
Davoodi, H., & Zou, H.-F. (1998). Fiscal Decentralization and Economic Growth: A Cross-Country Study. Journal of Urban Economics, 43, 244–257.
Fitriady, A., Silvia, V., & Suriani, S. (2022). The Impact of Macroeconomic Variables on the Real Economic Growth in Indonesia. International Journal of Global Optimization and Its Application, 1(2), 70–79. https://doi.org/10.56225/ijgoia.v1i2.16
Garza-Rodriguez, J. (2018). Poverty and economic growth in Mexico. Social Sciences, 7(10). https://doi.org/10.3390/socsci7100183
Hafizd, A., Anis, A., & Triani, M. (2018). Analisis Faktor Penyebab Kemiskinan di Kabupaten Kerinci dari Dimensi Kultural. Jurnal EcoGen, 1(3), 503–510.
Islam, M. S. (2020). Human Capital and Per Capita Income Linkage in South Asia: A Heterogeneous Dynamic Panel Analysis. Journal of the Knowledge Economy, 11(4), 1614–1629. https://doi.org/10.1007/s13132-020-00637-1
Jacobus, E. H., Kindangen, P., & Walewangko, E. N. (2018). Analisis Faktor-faktor yang Mempengaruhi Kemiskinan Rumah Tangga di Sulawesi Utara. Jurnal Pembanguan Ekonomi Dan Keuangan Daerah, 19(3).
Junaidi, Silvia, V., & Abrar, M. (2023). The Effect of Incremental Capital Output Ratio (ICOR), Labor Force Participation Rate (TPAK) and Index Human Development (IPM) Against Economic Growth in Indonesia. International Journal of Social Science and Human Research. https://doi.org/10.47191/ijsshr/v6-i8-27
Kusuma, A. F., & Anwar, A. (2024). Analisis ketergantungan fiskal daerah dan pertumbuhan ekonomi di Jawa Tengah. Jurnal Kebijakan Ekonomi Dan Keuangan, 223–233. https://doi.org/10.20885/jkek.vol2.iss2.art14
Lukis Panjawa, J., & Triyanto, J. (2020). The Role of Human Development and Decentralization toward Poverty Through Economic Growth. Gorontalo Development Review, 3(1), 39–47.
Lustig, N., Pabon, V. M., & Pessino, C. (2023). Fiscal Policy, Income Redistribution, and Poverty Reduction in Latin America. Inter-American Development Bank. http://www.iadb.org
Mahfuzha, A., Zakia Rizki, C., Sapha, D., Jamal, A., & Weri. (2018). Is Zakat Important in Reducing Poverty? Nces in Social Science, Education and Humanities Research, 292, 558–562.
Maulida, S., & Silvia, V. (2016). Indeks Pembangunan Manusia Pasca Pemekaran pada Enam Kabupaten di Provinsi Aceh. JIM) Ekonomi Pembangunan Fakultas Ekonomi Dan Bisnis Unsyiah, 1(2), 389–399.
Meier, G. M., Rauch, J. E., & Oxford, N. Y. (2000). Leading Issues in Economic Development.
Mustika, F. N., Setyowati, E., & Alam, A. (2019). Analysis of Effect of ZIS (Zakat, Infaq, And Shadaqah), Regional Domestic Products of Bruto, Regional Minimum Wage and Inflation on Levels Poverty in Indonesia 2012-2016. Journal of Islamic Economic Laws, 2(2), 193–211.
Mustika, M. D. S. (2013). Analisis Strategi Peningkatan Sumber Daya Manusia dalam Upaya Pengentasan Kemiskinan di Kecamatan Nusa Penida. Jurnal Buletin Studi Ekonomi, 18(2), 98–106.
Rahman, M. A., Sani, N. S., Hamdan, R., Othman, Z. A., & Bakar, A. A. (2021). A clustering approach to identify multidimensional poverty indicators for the bottom 40 percent group. PLoS ONE, 16(8 August). https://doi.org/10.1371/journal.pone.0255312
Ringga, E. S., & Silvia, V. (2024). The Nexus Between Democracy, Human Development, and Economic Growth: A Provincial Analysis. Grimsa Journal of Business and Economics Studies, 1(1), 32–42. https://doi.org/10.61975/gjbes.v1i1.20
Sanogo, T. (2019). Does fiscal decentralization enhance citizens’ access to public services and reduce poverty? Evidence from Côte d’Ivoire municipalities in a conflict setting. World Development, 113, 204–221. https://doi.org/10.1016/j.worlddev.2018.09.008
Sari, N., Harahap, I., & Tambunan, K. (2023). Pengaruh Desentralisasi Fiskal dan Tingkat Kemiskinan terhadap Pertumbuhan Ekonomi pada Provinsi Sumatera Utara. Transformasi Manageria Journal of Islamic Education Management, 3(2), 586. https://doi.org/10.47476/manageria.v3i2.3907
Sembiring, F., Tarmizi, T., & Rujiman, R. (2020). Analisis Pengaruh Pertumbuhan Ekonomi, IPM, Pengangguran Terbuka dan Angkatan Kerja Terhadap Kemiskinan di Sumatera Utara. Serambi Engineering, 5(2), 974–984.
Sepulveda, C. F., & Martinez-Vazquez, J. (2011). The consequences of fiscal decentralization on poverty and income equality. Environment and Planning C: Government and Policy, 29(2), 321–343. https://doi.org/10.1068/c1033r
Silvia, V. (2020). Statistika Deskriptif. Andi.
Szabo, S. (2016). The impact of fiscal decentralization on local economic growth. The case of Romania.
Todaro, M. P., & Smith, S. C. (2012). Economic Development (11th ed.). Addison-Wesley.
Yang, Z. (2016). Tax reform, fiscal decentralization, and regional economic growth: New evidence from China. Economic Modelling, 59, 520–528. https://doi.org/10.1016/j.econmod.2016.07.020
Zheng, M., Li, X., Qin, Z., & Sohail, M. T. (2023). Examining the Impact of Fiscal Resources on Anti-Poverty Expenditure: Evidence from China. Sustainability (Switzerland), 15(5). https://doi.org/10.3390/su15054371
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Authors
This work is licensed under a Creative Commons Attribution 4.0 International License.
