Poverty in Riau Province: The Role of Economic Growth, Income Distribution, and Human Development

Abstract

This study aims to analyze the effect of economic growth, income distribution, and the Human Development Index (HDI) on poverty levels in Riau Province during the 2018-2021 period. The data used is secondary data from the Central Statistics Agency (BPS), analyzed using panel data regression with a random effect approach. The results show that economic growth has a negative and significant effect on poverty levels, with each 1% increase in economic growth reducing poverty levels by 0.0899%. The Human Development Index also has a negative and significant effect, where a 1-point increase in HDI reduces poverty levels by 0.5371%. However, income distribution (measured by the Gini Index) does not significantly affect poverty. Simultaneously, these three variables significantly influence poverty levels, as indicated by an F-test probability value of 0.0024. These findings highlight the importance of inclusive economic growth and improving human development quality as key strategies for poverty alleviation in Riau Province. This study recommends an integrated policy approach, including strengthening productive economic sectors, reducing income inequality, and enhancing education and healthcare quality to achieve sustainable development.