Heterogeneity of poverty in two East Javanese cultures: A panel analysis of Mataraman and Pandalungan

Poverty is a multidimensional problem influenced by economic, social, and cultural factors. In Indonesia, particularly in East Java, differences in the characteristics of cultural regions, such as Mataraman and Pandalungan, contribute to poverty levels. However, studies integrating a spatial approach to understanding poverty patterns in these two regions are still limited. This study aims to analyze the determinants of poverty by considering spatial effects and key economic, social, and personal factors, such as economic growth (GRDP), education, the open unemployment rate (TPT), and health (life expectancy (AHH)). This study uses a quantitative approach with spatial panel regression analysis based on data from 25 districts or cities in East Java during the period 2004–2023. The regression models used include the Fixed Effect Model (FEM) and spatial regression approaches, such as the Spatial Autoregressive Model (SAR), the Spatial Error Model (SEM), and the Spatial Durbin Model (SDM). The results show that the Spatial Autoregressive Model with FEM (SAR-FEM) is the best approach in explaining variations in poverty between regions. The main findings indicate that economic growth and education have a significant negative impact on poverty, while the unemployment rate has a positive impact. However, life expectancy does not show a significant relationship. Furthermore, spatial dependency tests confirm the existence of a clustering pattern in poverty. These results emphasize the importance of a spatially based approach in poverty alleviation policies and the development of integrated and contextual development strategies.