TITLE:
AUTHORS:
Siti Nur Latifah, Moehammad Fathorrazi, Lilis Yuliati, Duwi Yunitasari
DOI: 10.5110/77. 1119 Page: 27-40 Vol: 19 Issue: 03 Year: 2024
ABSTRACT
The poverty problem is a multidimensional discourse. The debate about poverty and how to exterminate it has been carried out for many years. This is important because the problem of poverty can have implications for social, economic, and political problems in society. In Islamic history, one scholar who discussed poverty was Ibn Khaldun. Referring to the socio-economic dynamics theory compiled by Umer Chapra based on Ibn Khaldun’s thoughts in his “eight wise principles” or Hikammiyah sentences, Ibn Khaldun views poverty as not only caused by economic factors but also influenced by multidimensional non-economic aspects (morality). This study aims to observe the influence of Ibnu Khaldun’s social-economic dynamics, such as government spending in the social sector, corruption, human development index (HDI), Gross Regional Domestic Product (GRDP), Foreign Direct investment (FDI), and Gini ratio over poverty rates in Indonesia. This study used modeling using the static panel data regression method with the Pooled Least Square (PLS) approach. Based on panel data analysis which includes data from 34 provinces in Indonesia for the 2018-2022 period, it was found that the variables of government spending in the social sector, corruption and Gross Regional Domestic Product (GRDP), significantly affect the poverty rate in Indonesia. Meanwhile, the variables Human Development Index (HDI), Foreign Direct investment (FDI), and Gini ratio have no effect.
Keywords:
Poverty, Ibn Khaldun, Morality, Corruption, Pooled Least Square (PLS)
Received: 09 February 2024
Accepted: 24 February 2024
Published: 02 March 2024
