THE EFFECT OF SERVICE SOLVENCY AND GROWTH OF ORIGINAL LOCAL GOVERNMENT REVENUE ON POVERTY LEVEL IN LANGSA CITY WITH GROSS REGIONAL DOMESTIC PRODUCT AS A MEDIATING FACTOR

Agustina Nurul Fajriah
Mayang Murni
Asnidar
Noera Iman Sari
Muhammad Salman

International Journal of Educational Review, Law And Social Sciences (IJERLAS)
Vol. 4 No. 6 (2024): November

Many factors determine the level of poverty in a region, therefore comprehensive steps are needed to achieve general prosperity and reduce the rate of poverty, taking into account the underlying factors. The urgency and renewal regarding service solvency which has not been studied extensively and the level of poverty has become important topic, as Aceh is one of the 10 poorest provinces in Indonesia. This research aims to determine the effect of service solvency and the growth of original local government revenue on poverty levels using gross regional domestic product as mediating factor in Langsa city. Based on research findings, it is known that simultaneously service solvency and original local government revenue variables have significant effect on poverty level. Partially, original local government revenue variable has positive and significant effect on poverty level, while service solvency has no effect on poverty level. The result of path analysis testing indicates gross regional domestic product variable is not able to serve as a mediating variable for service solvency and original local government revenue on poverty level in Langsa city.