MACROECONOMIC DETERMINANTS OF POVERTY IN YOGYAKARTA

Abstract

This study aims to analyze the factors influencing poverty in Yogyakarta from 2021 to 2025. The variables used in this study are the Human Development Index (HDI), unemployment, and Gross Regional Domestic Product (GRDP). This study is expected to analyze how and to what extent the aforementioned independent variables influence poverty in Yogyakarta, which is ultimately expected to serve as a basis for formulating policies to reduce poverty in Yogyakarta. This study uses panel data from five regencies/cities during the period of 2021-2025. The data used is secondary data obtained from the Central Statistics Agency (BPS) of Yogyakarta. The analysis technique used in this study is panel data regression with a Random Effect Model (REM) approach. The results indicate that the Human Development Index has a negative and significant effect on poverty in Yogyakarta while, the unemployment and GRDP variables do not have a significant effect on the poverty level in Yogyakarta.