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Research Paper | Finance | Indonesia | Volume 8 Issue 7, July 2019

Village Fund Allocation and Village Fund to Reduce Poverty Rate Using Good Village Governance as Moderation in East Lombok Regency

Baiq Ekayuliana | Budi Santoso ^[2] | Siti Aisyah Hidayati ^[2]

Abstract: Village Fund Allocation and Village Fund are fund transfers from the central government to assist village governments in development and operations so that rural communities can be more prosperous and reduce poverty in the village. This study aims to analyze the effect of village fund allocation and village fund on poverty rates using good village governance as moderation in East Lombok district. The results of the study indicate that the Village Fund Allocation has a positive and significant effect on the poverty rate, The Village Fund has a positive but not significant effect on the poverty rate. Good Village Governance weakens the relationship between village fund allocation and poverty rates this is due to the still not optimal implementation of Good Village Governance in the implementation of Village Fund Allocation especially on indicators of transparency and participation and strengthens the relationship between village funds and poverty rates. This is because the Village Fund is mostly used for infrastructure activities while empowerment activities are still minimal Good Village Governance is proved as homogenizer moderation on Allocation of Village Funds and Village Funds with poverty rates

Keywords: Village Fund Allocation, Village Funds, Good Village Governance, Poverty Rate

Edition: Volume 8 Issue 7, July 2019,

Pages: 283 - 291

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