Abstract :
The allocation of village funds are needed because of the decentralization and delegation of
authority of village autonomy is to provide public services and the implementation of village
governance in accordance with regulations-regulations applicable. This allocation is expected
to improve development and socio-economic progress of society include poverty. The purpose of
this study is to examine the effect of the allocation of village funds on the level of poverty. The
variables used are village funds allocation and the number of poor peoples. Data used timeseries
and cross-sectional data from all districts and cities in Indonesia during the period 2012
to 2015. Used purposive sampling, this research samples is 409 districts and cities from total
516 districts and cities in Indonesia. The statistical method used is quantitative. Chow test,
Hausman test, and Lagrange multiplier test in this study showed that fixed effect is the best
models in regression. The data used in this research is processed using Eviews 9 to get the result
of linear regressions. The result showed that village funds allocation has an effect on poverty
but the effect insignificant.
Keyword :
IndexTerms—Decentralization, village funds, village, district, poverty