Economic Growth Mediates Village Funds And  Original Local Government Revenue Towards  Poverty In Regencies/Cities In East Java

Nurharibnu Wibisono; Munirul Abidin; Vivin Maharani Ekowati

doi:10.29240/alfalah.v9i1.8314

Economic Growth Mediates Village Funds And Original Local Government Revenue Towards Poverty In Regencies/Cities In East Java

Nurharibnu Wibisono, Munirul Abidin, Vivin Maharani Ekowati

Abstract

Purpose: The mean of its research was to examine the effect of Village Funds and Local Government Revenue (PAD) on poverty mediated by economic growth in regencies and cities in East Java province.

Design/Method/Approach: The research population is regencies/cities in East Java in 2015–2022. The data on Village Funds and Local Government Revenue were taken from the DJPK of the Ministry of Finance Republic Indonesia situs. The data on poverty and economic growth were obtained from the website of the Central Bureau of Statistics (BPS) of East Java Province. The data analysis used path analysis.

Findings: The outputs declare Village Funds had a significant positive influence on poverty. Village Funds have no significant influence on economic accretion. Local Government Income has a significant negative influence on poverty. Local Government Revenue has a significant positive influence on economic accretion. Economic increases has a significant positive influence on poverty. Village Funds have a significant positive indirect impact on poverty by way of economic growth. Original Government Revenue has a significant positive indirect influence on poverty through economic increases.

Originality/Values: Economic growth must be encouraged because it is able to mediates village funds and original local government revenue towards poverty in regencies/cities In East Java.

Keywords

Village, Government, Revenue, Poverty, Economic

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DOI: http://dx.doi.org/10.29240/alfalah.v3i2.587

Regulations

Law (UU) Number 28 of 2009 concerning Regional Taxes and Regional Levies

Law (UU) Number 33 of 2004 concerning Financial Balance between the Center and the Regions

Law (UU) Number 6 of 2014 concerning Villages

Regulation of the Minister of Home Affairs (Permendagri) Number 113 of 2014 concerning Village Financial Management

Presidential Decree (Peraturan Presiden) Number 59 of 2017 Concerning the Implementation of the Achievement of Sustainable Development Goals (SDG's)

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https://jatim.bps.go.id/ : Number of poor people in districts/cities receiving Village Funds in East Java Province in 2015-2022 (accessed 15-25/04/2023)

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DOI: http://dx.doi.org/10.29240/alfalah.v9i1.8314