EXPLORING POVERTY IN WEST NUSA TENGGARA: A CALL FOR ACTION

Abstract

This study evaluates the relationships between poverty, education, unemployment, and economic growth in West Nusa Tenggara from 2017 to 2023 using panel data regression analysis. Three regression models—pooled least squares (PLS), fixed effects model (FEM), and random effects model (REM)—were compared to select the most appropriate. The FEM was chosen over PLS due to its significant results, while REM was deemed inferior based on Hausman test outcomes. Despite violating classical assumptions such as non-normality and multicollinearity, adjustments were made, leading to a refined regression model. Findings indicate that higher regional GDP and education levels correlate with lower poverty rates, while unemployment shows minimal impact. This underscores the importance of addressing income inequality and implementing inclusive policies to maximize the poverty-reducing potential of economic growth.