THE EFFECT OF LOCAL OWN-SOURCE REVENUE AND VILLAGE FUNDS ON THE POVERTY RATE IN THE PROVINCE OF NORTH SUMATRA

Abstract

This study aims to determine the effect of Local Own Revenue and Village Funds on Poverty Levels in North Sumatra Province. The data used is in the form of secondary data sourced from the Central Bureau of Statistics with a time span from 2018 to 2022, using research objects of 27 Regencies/Cities in North Sumatra Province. The analytical method used in this study is the panel data analysis method with the Fixed Effect Model (FEM) Analysis model. The test results prove that the Regional Original Income variable has a significant negative effect on the poverty rate in North Sumatra Province, the Village Fund variable has a significant negative effect on the poverty rate in North Sumatra Province. And together the variables of Local Own Revenue and Village Funds have a significant influence on the level of poverty in North Sumatra Province.