The Effect of Human Development Index (HDI) and Open Unemployment Rate (TPT) On Poverty in Aceh Province in 2019-2021: Panel Data Analysis

Abstract

Poverty is one of the important problems faced by developing countries, including Indonesia. Aceh is one of the provinces known for its sharia, even in 2021 all financial systems in Aceh must be based on sharia in accordance with Islamic economics, but Aceh in the period 2020 and 2021 was the poorest on the island of Sumatra. In terms of the Human Development Index (HDI), it was ranked 13th highest in 2021 and the Open Unemployment Rate (TPT) Aceh was ranked 11th in the national unemployment rate in 2021.

Data analysis was carried out using panel data regression by selecting the best regression model, namely Fixed Effect Model, by combining Cross data Section 21 districts in Aceh Province during the period 2019-2021. The results of the study showed that partially the human development index and the open unemployment rate did not have a significant effect on poverty. However, simultaneously the human development index and the open unemployment rate had an effect on poverty in Aceh Province.