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ANALISIS DINAMIS FAKTOR-FAKTOR YANG MEMPENGARUHI KEMISKINAN DI PROVINSI SULAWESI SELATAN: PENDEKATAN ERROR CORRECTION MODEL (ECM) Caesar Muslim; Muadsim, Ikrar; Saenong, Zainuddin
Journal Economics Technology And Entrepreneur Vol 4 No 03 (2025): ECOTECHNOPRENEUR : JOURNAL ECONOMICS, TECHNOLOGY AND ENTREPRENEUR
Publisher : Pusat Studi Ekonomi, Publikasi Ilmiah dan Pengembangan SDM

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62668/ecotechnopreneur.v4i03.1754

Abstract

This study analyzes factors influencing poverty in South Sulawesi Province, focusing on the roles of the Human Development Index (HDI), investment, and the Labor Force Participation Rate (LFPR). A quantitative approach is applied using time-series data on the number of poor residents, HDI, domestic investment, and LFPR over a defined observation period. The analysis employs the Error Correction Model (ECM) to capture both short- and long-term relationships among the variables. The results reveal that, in the long run, HDI has a negative and significant effect on poverty, indicating that improving human development quality sustainably reduces the poor population. In contrast, investment and LFPR show no significant long-term impact on poverty reduction. Likewise, HDI, investment, and LFPR are not significant in the short run. These findings highlight the central role of human development policies as a primary strategy for poverty alleviation in South Sulawesi while underscoring the need to optimize investment and labor force contributions.