AN EMPIRICAL OF INVESTMENT AND GOVERNMENT SPENDING ON POVERTYLEVELS IN PAPUA PROVINCE THROUGTH ECONOMIC GROWTH AND MIGRATION

This study aims to measure both the direct effectand indirect effect of investment and goverment on poverty. We regress indirect effect 0f the respective varables trougth economic growth, and migration. In this study Structural Equation Model (SEM) is applied. We use panel data of 29 districts withinPapua Province for periode of 2007- 2017. Then werunregression by utilizing analisys of moment structure (AMOS). The resarch reveal the results investment have no effect on poverty both directly and indirectly through economic growth. An then result reveal that investment have significant effect on poverty through migration. In addition, government spending does not have effect on poverty both directly and indirectly through economic growth. In spite of that government spending have significant effects on poverty through migration. Thus, we may generalize that investment and goverment spending have yet effect on reduceng poverty rate, both through economic growth, community empowerment and through labor absorption.