The Influence of Regional Original Income (PAD) and General Allocation Funds (DAU) on Poverty in West Nias Regency 2012 - 2022

Abstract

West Nias Regency is the district with the highest poverty rate in North Sumatra. In an effort to reduce poverty in a region, the central government has given authority to regional governments to manage their respective regional finances through regional autonomy. The purpose of this study is to see how the effect of local original income and general allocation funds on poverty. The type of data used in this study is secondary data with time series data types sourced from BPS. Based on testing using a regression model, it is known that the regional original income variable has a t-statistic value of 0.729042 and a probability value of 0.4868>0.05, so it can be concluded that the regional original income variable has a positive and insignificant relationship with the poverty variable where H1 rejected. The general allocation fund variable has a t-statistic value of -1.696930 and a probability value of 0.1281>0.05, so it can be concluded that the general allocation fund variable has a negative relationship but does not significantly affect the poverty variable. Therefore H2 rejected.