The Effect of Local Revenue and ZIS Funds on Poverty: Empirical Evidence of Panel Data in Aceh

Abstract

This study aims to determine the effect of Regional Original Income (PAD), Zakat Infaq and Sadaqah funds (ZIS) on Poverty (MIS) in 23 districts/cities in Aceh province for 5 (five) years, namely 2013-2017. The method used is panel data regression analysis. The Hausman test results (Hausman test) show that the best model for this panel data is a random effect model. This study concludes that the independent variables are simultaneously significant towards poverty. Partially the PAD is significantly negative for the consequences in districts/cities in Aceh province. And ZIS funds are significantly negative towards poverty, meaning that local revenue and zakat infaq and sadaqah funds can reduce poverty in districts / cities in Aceh province. From these findings, it can be interpreted that the ability of independent variables can explain, 95.59% of poverty. And the remaining 4.41% is explained by other variables not included in this study. The district/city government is expected to be able to increase regional original income and infaq and sadaqah zakat funds so that it will continue to contribute to reducing poverty.Keywords: Poverty, Regional Original Income, Zakat Infaq & Sadaqah, Panel Regression.