The Role of Human Development and Decentralization toward Poverty Through Economic Growth

Abstract

Efforts to reduce poverty that continue in the sustainable development goals (SDGs), need to research with different approaches for each different problem. The objective of this research is to analyze the direct and indirect effects of human development and fiscal decentralization on poverty through economic growth in eastern Indonesia. The analytical method used the causal model for directly observed variables. The results show that there is no significant effect on human development and fiscal decentralization on economic growth. In addition, human development has negative and significant direct effect on poverty but does not affect poverty through economic growth. Fiscal decentralization has no effect on poverty through economic growth, while economic growth has negative and significant direct effect on poverty. Policy by prioritizing improving human resource qualities will be effective in reducing poverty directly.

Energy Transition and Poverty Alleviation in Light of Environmental and Economic Challenges: A Comparative Study in China and the European Union Region

“…Breunig et al [26] looked at the relationship between economic growth, poverty, and inequality and discovered that these factors had a detrimental effect on the latter. In a similar vein, Panjawa et al [27] discovered that fiscal decentralization has no impact on poverty through economic growth, but economic growth has a negative and large direct influence on poverty. In their investigation of the connections between remittances received, educational costs, energy consumption, income, poverty, and economic growth, Wu et al [24] discovered that while remittances have a beneficial impact on economic growth, rising poverty has a negative impact on it.…”

“…The relationship between poverty and economic growth is multifaceted and multifaceted, with recent research offering a range of perspectives. Some studies find a negative impact of poverty on economic growth [26,27,32]. Poverty can hinder growth by limiting resources for investment and innovation.…”