Analysis of the influence of regional spending on obligatory basic services on multidimensional poverty in Riau Province

Sri Endang Kornita, Syapsan Syapsan, Any Widyatsari and Harry Prabowo

International Journal of Services and Operations Management, 2024, vol. 48, issue 5, 1-18

Abstract: This study aims to measure the percentage of multi-dimensionally poor people using the Alkire Foster method using raw data from the results of the 2018-2020 BPS Riau Province National Socio-Economic Survey, then compared with the results of measuring poverty using a monetary approach. Next, an analysis of the effect of spending on compulsory basic services on the percentage of the multi-dimensionally poor population in Riau Province was carried out. The results of this study indicate that the percentage of the multi-dimensionally poor population in Riau Province is always greater than the percentage of the monetary poor population. This means that measuring poverty with a multidimensional approach can describe poverty more broadly than the monetary approach. This reconfirms that the capability approach theory is more reliable in describing poverty than the basic need approach theory. Regional spending on compulsory basic services did not have a significant effect on reducing the percentage of multi-dimensionally poor people in Riau Province, except after adding the economic function expenditure variable.

Keywords: poverty; multidimensional poverty; government spending; capability approach. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsoma:v:48:y:2024:i:5:p:1-18

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