Analysis of macroeconomic factors affecting poverty levels in Indonesia using a dummy regression model approach

Nur Rezky Safitriani; Valina Ambarwati; Miftahull Jannah; Nabila Safitri

doi:10.55942/pssj.v5i8.630

Authors

Nur Rezky Safitriani Tadulako University https://orcid.org/0009-0007-8941-1832
Valina Ambarwati Tadulako University
Miftahull Jannah Tadulako University
Nabila Safitri Tadulako University

DOI:

https://doi.org/10.55942/pssj.v5i8.630

Keywords:

Regression, Dummy Variables, Poverty, Macroeconomic, Indonesian

Abstract

Poverty in Indonesia remains a complex macroeconomic issue, influenced by various social, economic, and regional disparities. This study employed a dummy variable regression model to analyze the factors affecting poverty more comprehensively, allowing for the identification of categorical geographic effects. This study examines the influence of the Gender Empowerment Index, Expected Years of Schooling, Gini Ratio, Open Unemployment Rate, and Formal Employment on the percentage of the poor population in Indonesia, while considering regional classifications in Western, Central, and Eastern Indonesia. The results show that the Gender Empowerment Index and proportion of Formal Employment have a significant negative effect on poverty, while the Gini Ratio has a significant positive effect. Additionally, the Western and Central regions exhibit significantly lower poverty rates than the eastern region. The dummy regression model explains 83,64% of the variation in poverty across provinces, making it a relevant basis for formulating region-specific and macro-economically informed poverty alleviation policies.

Author Biographies

Nur Rezky Safitriani, Tadulako University

Nur Rezky Safitriani is a lecturer in the Department of Statistics at Universitas Tadulako, Indonesia. She teaches courses in econometrics and applied statistics, with a particular interest in quantitative analysis for economic and social research. Her academic work involves supervising undergraduate research, guiding students in the application of statistical methods, and developing learning materials to strengthen statistical literacy. In this paper, she supervised the research process and contributed significantly to the conceptualization, methodological design, and overall development of the manuscript. Her commitment to advancing applied statistics education and research is reflected in her scholarly activities and publications.

Valina Ambarwati, Tadulako University

Valina Ambarwati is an undergraduate student of Statistics at Universitas Tadulako, Indonesia. Her academic interests include statistical modeling, data visualization, and applied data analysis. She has participated in several research projects focusing on socioeconomic data and survey analysis. For this paper, she contributed to data preparation, cleaning, and processing, as well as conducting statistical analyses to support the study’s findings. Her attention to detail and ability to apply statistical tools effectively were integral to the accuracy of the results.

Miftahull Jannah, Tadulako University

Miftahull Jannah is an undergraduate student of Statistics at Universitas Tadulako, Indonesia. Her main academic focus is on statistical writing, academic communication, and applied quantitative research. She has experience in drafting academic manuscripts, structuring research reports, and synthesizing literature reviews. In this paper, she was primarily responsible for drafting the introduction, integrating relevant literature, and compiling the final version of the manuscript for submission. Her work ensured the clarity, coherence, and alignment of the paper with academic writing standards.

Nabila Safitri, Tadulako University

Nabila Safitri is an undergraduate student of Statistics at Universitas Tadulako, Indonesia. She is particularly interested in data presentation, visual communication, and infographic design for research dissemination. Her experience includes creating visual aids, statistical charts, and presentation materials for academic projects. For this paper, she was responsible for designing and preparing the visual infographics that accompanied the research findings, ensuring that complex statistical results were communicated clearly and effectively to readers.

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