EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis
Vol 13 No 4 (2025): Oktober

Analysis Of The Effect Of Population Density, GRDP, Unemployment Rate, Government Expenditure, Minimum Wage, And The Proportion Of The Agricultural Sector’s GRDP On Poverty Level In West Java For The Period 2016-2021

Dwi Rahayu Novianti (Program Studi Ekonomi Pembangunan, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Surakarta)
Yuni Prihadi Utomo (Program Studi Ekonomi Pembangunan, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Surakarta)



Article Info

Publish Date
18 Oct 2025

Abstract

This study aims to examine the effects of population density, Gross Regional Domestic Product (GRDP), the open unemployment rate, government expenditure, the regional minimum wage (RMW), and the proportion of the agricultural sector in GRDP on the poverty rate in West Java Province. The study employs panel data regression analysis, combining time series data from 2016 to 2021 and cross-sectional data from 27 regencies and cities in West Java. The estimation results indicate that the Fixed Effect Model (FEM) is the most appropriate model. The findings reveal that all variables in the model have a statistically significant impact on the poverty rate. Population density and the open unemployment rate have positive effects, indicating that increases in these variables are associated with higher poverty levels. In contrast, GRDP, government expenditure, and the proportion of the agricultural sector in GRDP have negative effects, suggesting that increases in these indicators contribute to poverty reduction. Although the regional minimum wage is theoretically expected to alleviate poverty, the results indicate a positive relationship between RMW and poverty. This may be attributed to its potential impact on the informal labor market or reduced employment opportunities. These findings provide important implications for poverty alleviation policies, particularly those that address demographic pressures, labor market dynamics, and the role of local economic sectors.

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Journal Info

Abbrev

ER

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Energy Other

Description

Ekombis Review: Jurnal Ilmiah Ekonomi dan Bisnis is a peer-reviewed journal. Ekombis invites academics and researchers who do original research in the fields of economics, management, and ...