The Effect of Rural Development on Poverty Gap, Poverty Severity and Local Economic Growth in Indonesia

The effect of rural development in reducing the poverty gap and economic growth has not been much analyzed recent studies. This study examines effects (as calculated by using Village Development Index, VDI) on growth. Precisely, is measured depth Poverty Gap P1) severity Severity P2) aggregate data at district level Indonesia. Understandably, many factors influence effort to reduce areas, it can be started improving development. result this indicates that regions with VDI categorized as “self-sufficient” “developed” villages have potential its areas increase In contrast, underdeveloped very their category experienced a more significant poverty. implies Indonesian government must accelerate improve especially less developed regions. Thus, better status will attract opportunities grow activities community welfare.