DETERMINATION OF DISTRICT/CITY POVERTY LEVELS IN CENTRAL SULAWESI PROVINCE AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) APPROACH

Abstract

Purpose: The primary aim of this research is to examine the impact of economic growth and the human development index on poverty levels across 13 districts/cities in Central Sulawesi Province. Method: The analytical approach employed in this study is panel data analysis using the Autoregressive Distributed Lag (ARDL) method through Eviews version 11 software. Results and conclusion: The findings from the panel data regression indicate that, in the short term, there is no significant relationship between economic growth, human development index, and poverty levels in the districts/cities of Central Sulawesi Province. However, in the long term, economic growth is negatively associated with poverty rates, while the human development index has a positive and significant impact on poverty levels in the province. In order to alleviate poverty in Central Sulawesi Province, it is recommended to implement pro-poor, pro-job, and pro-growth programs, as well as to enhance employment opportunities and increase budget allocations for education, health, finance, and public service infrastructure. These measures are crucial for fostering sustainable human development in the region Research implications: This study has important implications for both academics and policymakers in Central Sulawesi Province, Indonesia. For academics, our findings add to what we know about how economic growth, human development, and poverty interact. For policymakers, our research offers practical advice on how to fight poverty effectively. Long-term economic growth plays a vital role in poverty reduction, thus emphasizing the significance of sustainable development. Moreover, enhancing education, healthcare, and social services, as measured by the human development index, can also contribute to uplifting individuals from poverty. Originality/value: Based on the study's findings, actionable recommendations are provided to address the existing poverty challenges in Central Sulawesi Province. These recommendations include implementing specific initiatives that are pro-poor, pro-job, and pro-growth. Additionally, strategies to enhance employment opportunities and allocate more funds to critical sectors like education, healthcare, finance, and public infrastructure are suggested. These interventions are crucial for promoting sustainable human development in the region and creating a more inclusive and equitable socio-economic landscape.