Have Village Funds Impact Growth Economy And Poverty Rate?

Abstract

This study aims to analyze the influence of exogenous variables (allocation of village funds and village expenditure) directly and indirectly on endogenous variables (poverty rate) through intervening variables (economic growth) in Mahakam Ulu Regency. The study was formed with secondary data and used time series data from the Central Statistics Agency of Mahakam Ulu Regency from 2014 to 2018. The study included a causality study, which explained the interrelationships between exogenous and endogenous variables, both directly and indirectly using path analysis techniques. The results of the analysis of model 1, the allocation of village funds (significant positive) and village expediture (insignificant and negative) on economic growth. In model 2, the allocation of village funds (significant positive), village expenditure (insignificant and negative), and economic growth (significant negative) on the rate of poverty. The indirect effect proves that the allocation of village funds (negative significant) and village expenditure (insignificant and positive) on the rate of poverty through economic growth in Mahakam Ulu Regency.