PENERAPAN KAIDAH RANTAI DALAM DIFERENSIAL: PENGARUH PRODUK DOMESTIK REGIONAL BRUTO TERHADAP KEMISKINAN 34 PROVINSI DI INDONESIA TAHUN 2017-2021

Abstract

Economic growth is a change in economic activity that leads to a rise in the production of goods and services, which will boost income of the society. Poverty is a complicated and inevitable issue when we talk about economic growth. Due to the use of Fixed Effects Model (FEM) with panel data regression as the analytical method, while used the chain rule approach on the differential. Gross Regional Domestic Product and Poverty data were utilized as dependent factors in this study, while other variables, including Human Development Index, Open Unemployment Rate, and Provincial Minimum Wage, were also independent variables of the GRDP. This study was carried out to evaluate the impact of Human Development Index, Open Unemployment Rate, and Provincial Minimum Wage on GRDP and the impact of GRDP on poverty in 34 provinces from 2017 to 2021. The findings indicate that both the Open Unemploymen Rate and Human Development Index had no significant impact on GRDP. While the Provincial Minimum Wage has a positive and significant impact on GRDP. As a consequence of the GRDP estimation, it was discovered that GRDP had a negative and significant impact on Poverty. Thus, mathematically, Open Unemployment Rate, Provincial Minimum Wage, and Human Development Index had a negative effect on Poverty.