Effects of per capita GRDP, education, and social assistance on poverty
DOI:
https://doi.org/10.52300/jepp.v6i1.23400Keywords:
poverty, GRDP per capita, educational attainment, social assistance, panel dataAbstract
Poverty reduction requires understanding how regional economic development, education, and fiscal redistribution interact in disadvantaged areas. This study examines the associations of gross regional domestic product (GRDP) per capita, mean years of schooling, and realized social assistance expenditure with poverty rates in five regencies with the highest poverty rates in Lampung Province, Indonesia. Secondary panel data covering 2018–2024 were analyzed using a logarithmic fixed effects specification selected through Chow and Hausman tests, with White cross-section robust standard errors. GRDP per capita and mean years of schooling were negatively and significantly associated with poverty, with estimated elasticities of −1.067 and −1.607, respectively. Social assistance expenditure exhibited a positive but statistically insignificant coefficient, providing insufficient evidence of a poverty-reducing association within the observed period. The model, including regency fixed effects, explained approximately 91% of poverty variation. These findings support coordinated policies that expand productive economic opportunities, improve educational attainment, and strengthen assistance targeting and implementation. However, the observational design limits causal interpretation, and the findings remain specific to the selected regencies and period
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