The Effect of Social Expenditure and Gross Regional Domestic Product on Poverty in the East Java Metropolitan Area

Ahmad Reifaldi Tri Wicaksono; Risqi Noor Hidayati Putri

doi:10.55927/ijbae.v5i1.554

Authors

Ahmad Reifaldi Tri Wicaksono Universitas Negeri Surabaya
Risqi Noor Hidayati Putri Universitas Negeri Surabaya

DOI:

https://doi.org/10.55927/ijbae.v5i1.554

Keywords:

Social Expenditure, Gross Regional Domestic Product, Poverty

Abstract

This study examines the effects of social spending and Gross Regional Domestic Product (GRDP) on poverty reduction in the metropolitan areas of East Java during the 2019–2024 period, using BPNT, BOK, BOS, Village Funds, and GRDP as the main variables. Using secondary data and panel data regression analysis processed with EViews 12, the results show that GRDP has a negative and statistically significant effect on poverty, indicating that economic growth plays an important role in reducing poverty. In contrast, BPNT has a positive and statistically significant effect on poverty, suggesting that the program has not been effective in supporting poverty reduction and requires improvements in targeting accuracy and implementation effectiveness. Meanwhile, BOK, BOS, and Village Funds do not show a significant effect on poverty reduction, indicating the need to optimize these programs so that they can contribute more effectively to reducing poverty.

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