ANALYSIS OF FACTORS AFFECTING POVERTY LEVELS IN WESTERN SUMATERA

Abstract

By                             : Sari Rusmawati

Advisor I              : Dr. Irwan Muslim, S.E., M.P

Advisor II            : Kasman Karimi, S.E, M.Si

SUMMARY

One of the goals of national development is to improve the performance of the economy in order to create jobs and organize a decent life for all people which in turn will realize the welfare of the population in a country. For the Indonesian state one of the national development goals is to reduce the poverty level.

Poverty is a condition in which a person is unable to maintain himself according to the standard of living and is also unable to utilize his mental and physical energy in the group. Poverty should not be regarded merely as low income, but should be regarded as incapacity of capability. Poverty can be a determinant and a dominant factor affecting humanitarian issues such as underdevelopment, ignorance, neglect, crime, violence, trafficking, illiteracy, dropping out, street children, child labor.

The analytical method used in this research is descriptive analysis method and panel data regression analysis from 2010 until 2016 published by Badan Pusat Statistik. As a data processing tool using eviews program.

The results showed that Per Capita and Old School Expectations had a negative and significant effect on Poverty Rate. While Open Unemployment Rate, Average School Duration and Average Number of Household Members have positive and insignificant effect on Poverty Level.

Keywords: Poverty Level, Per Capita Income, Open Unemployment Rate, Average School Duration, School Expectation, Average Number of Household Members