Direct Effects of Village Fund Program on the Human Development Index, and Its Implications on Poverty Level

Abstract

This study entitled The Direct Effects of the Village Fund Program on the Human Development Index, and its Implications for Poverty in Ogan Komering Ulu Regency, South Sumatra Province. The purpose of this study was to examine the direct effect of the Village Fund Program on the Human Development Index and its implications for the Poverty Level in Ogan Komering Ulu Regency, South Sumatra. The hypothesis raised is that the Village Fund Program has a direct effect on increasing the Human Development Index, and it is suspected that the Human Development Index further strengthens the direct effect of the Village Fund Program in reducing poverty levels. The data analysis method used is using a Covariance-based Structural Equation Modelling, namely Maximum Likelihoo. The results of testing the hypothesis show that all hypotheses are confirmed or supported. This means that the Village Fund Program has a direct effect in increasing the Human Development Index and reducing the Poverty Level and the Human Development Index as a mediating variable, further strengthening the reduction in poverty levels in Ogan Komering Ulu Regency, South Sumatra Province. The implications and findings of the results of this study are inconsistencies between secondary and primary data which indicate that there are various causes that must be explored and developed further.