Jurnal Ekonomi dan Studi Pembangunan (JESP)
Vol 17, No 1 (2025)

Does Gross Regional Domestic Product (GRDP) Affect Poverty in South Sulawesi? Two-Stage Least Squares (2SLS) Approach

Abjinda Putra Asmara (IAIN Palopo)
Muh. Rasbi (IAIN Palopo)
Ishak Ishak (IAIN Palopo)
Fasiha Fasiha (IAIN Palopo)
Muhammad Nur Alam Muhajir (IAIN Palopo)
Muh. Abdi Imam (IAIN Palopo)



Article Info

Publish Date
27 May 2025

Abstract

This research aims to determine the simultaneous relationship between poverty and PDRB variables in South Sulawesi. This type of research is quantitative which focuses on revealing simultaneous relationships between variables. The population is Poverty and PDRB data for districts/cities in South Sulawesi Province in 2020. The sample used is a saturated sample of 24 districts/cities sourced from the central statistics agency. Next, this research data was analyzed using the Two Stage Least Square (2SLS) method. The results of this research show that the poverty variable has a significant effect on PDRB at a significance level of 5%. Meanwhile, the PDRB variable has a significant effect on poverty at a significance level of 5%. So it can be concluded that there is a simultaneous relationship between PDRB and Poverty at a significance level of 5%. Control variables namely Income, Education and Expenditure have no influence on poverty. Control variables Population, PAD and HDI have a significant influence on poverty. The suggestion in this research is that regional governments, especially the province of South Sulawesi, should pay more attention to the equal distribution of income in each region to increase PDRB and also pay attention to other factors such as population, local original income and the Human Development Index (HDI).

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Journal Info

Abbrev

JESP

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi dan Studi Pembangunan focuses on scientific papers related to development economics include critical analysis of economic development issues, local economic development, community economic development, economic growth, international trade and finance, fiscal and monetary policy, ...