ANALYSIS OF THE RELATIONSHIP BETWEEN VILLAGE DEVELOPMENT AND POVERTY ALLEVIATION: A REVIEW OF VILLAGE DEVELOPMENT INDEX ACHIEVEMENTS IN CENTRAL JAVA PROVINCE
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2026-06-18Downloads
Abstract
This study aims to examine the impact of rural development on poverty reduction in Central Java Province using the Village Development Index (Indeks Desa Membangun/IDM) as the primary indicator. A quantitative approach is employed using panel data regression covering 29 districts over the period 2020–2024. The estimated models include pooled Ordinary Least Squares (OLS), fixed effects, and random effects, with model selection conducted using the Chow test and Hausman test. The results indicate that the fixed effects model is the most appropriate specification. Empirically, the Village Development Index has a negative and statistically significant effect on poverty rates, suggesting that improvements in rural development quality contribute to poverty reduction. The relatively high coefficient of determination indicates that variations in poverty over time within regions are substantially explained by changes in IDM. These findings highlight the critical role of rural development as a strategic instrument for place-based poverty alleviation. However, persistent inter-regional disparities suggest that the benefits of rural development are not yet evenly distributed. This study contributes to the literature by reinforcing the place-based development framework, positioning villages as key analytical units in achieving inclusive and sustainable development.
Keywords:
rural development Village Development Index poverty place-based developmentReferences
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