Analyze The Influence Of Economic Growth, Income Inequality, And Unemployment On Poverty In The Coastal Regions Of North Sumatra Eko Wahyu Nugrahadi, Indra Maipita, Muamar Rinaldi & Tauada Silalahi
Universitas Negeri Medan
Abstract
Poverty and economic growth are complex topics that have been the focus of debate among economists. Economic growth is an indicator of development success and a prerequisite for reducing poverty levels. The aim of this study is to examine and analyze the influence of economic growth, income inequality, and unemployment on poverty in the coastal regions of North Sumatra. The data used in this study are secondary data sourced from BPS (Statistics Indonesia). To assess the influence of economic growth, income inequality, and unemployment on poverty, quantitative analysis was employed using panel data analysis. Panel data is a combination of cross-sectional data and time series data, allowing for a relatively short time period and cross-sectional data in this context representing the characteristics of the coastal regions in North Sumatra. The results of the panel data analysis indicate that there is a negative and significant impact of economic growth on poverty, a positive and significant impact of income inequality on poverty, and a negative but insignificant impact of unemployment on poverty. These findings are largely consistent with existing theory and empirical evidence, particularly regarding the influence of economic growth and income inequality on poverty. However, the results concerning unemployment require special attention and further analysis to understand why the outcomes differ from expectations. This opens the door for additional research to explore contextual factors affecting the relationship between unemployment and poverty in the studied sample. These results highlight the importance of policies that support inclusive economic growth, reduce income inequality, and provide protection for the unemployed to effectively reduce poverty
Keywords: Poverty, economic growth, income inequality, and unemployment
