The Influence of Dependency Ratio, Per Capita Income, Informal Agricultural Sector Labor, and the Percentage of Sick Population on Poverty Levels in Eastern Indonesia

Abstract

Poverty is one of the main development challenges still faced by many regions in Indonesia, including Eastern Indonesia, which has a higher poverty rate compared to other regions. Understanding the factors influencing poverty in this area is crucial for formulating effective poverty alleviation strategies. This research aims to analyze the influence of the dependency ratio, per capita expenditure, informal labor in the agricultural sector, and the percentage of the sick population on poverty levels in Eastern Indonesia. Using dynamic panel data analysis techniques and the Arellano-Bond System Generalized Method of Moments (Sys-GMM), this study found that among the variables examined, only the percentage of the sick population did not significantly affect poverty levels, either in the short or long term. Meanwhile, the dependency ratio, per capita income, and the percentage of informal labor in the agricultural sector showed a significant influence on poverty levels in Eastern Indonesia. These findings highlight the importance of focusing on the dependency ratio in efforts to alleviate poverty in the region.