Monetary and Multidimensional Poverty in Special Region of Yogyakarta: A Fiscal Decentralization Effect

Abstract

The aims of this study is: 1) To know and to analyze the characteristics of poverty in the Special Region of Yogyakarta; 2) to Analyze the ability of Fiscal Decentralization, Economic Growth, and Government Expenditure for Development in influencing the reduction of poverty rate in Special Region of Yogyakarta, Indonesia. The research emphasizes the fiscal decentralization aspect as a solution for poverty alleviation. On the other hand, this research put forward the characteristics of the province as a special region . The analysis method used is quantitative analysis with panel data analysis and descriptive qualitative method to sharpen the analysis result. Secondary data is used for empirical results of panel data regression analysis. The result of the research outline that the highest percentage of poverty in the Special Region of Yogyakarta is in Gunungkidul and Kulon Progo regencies where the amount exceeds the percentage of the poor in the Province as a whole; From the analysis it can be seen that three independent variables of fiscal decentralization, economic growth and government expenditure have a negative effect on the percentage of poverty in Special Region of Yogyakarta. The other result is that the monetary poverty in Special Region of Yogyakarta shows a static decline pattern, while multidimensional poverty in the same period shows a more dynamic pattern.

Keywords: Special Region of Yogyakarta, monetary poverty, multidimensional poverty, fiscal decentralization.