Year: 2026 | Month: June | Volume: 13 | Issue: 6 | Pages: 456-473
DOI: https://doi.org/10.52403/ijrr.20260645
The Impact of Special Allocation Funds and General Allocation Funds on Poverty Levels through Per Capita Income as a Mediating Variable in Sabang City
Haryani1, Emi Safrina2, Marzalina3
1,3Faculty of Economics, Almuslim University, Aceh, Indonesia
2 Faculty of Social and Political Sciences, Almuslim University, Aceh, Indonesia.
Corresponding Author: Haryani
ABSTRACT
This study aims to analyze the impact of Special Allocation Funds (DAK) and General Allocation Funds (DAU) on poverty levels in Sabang City, with per capita income serving as a mediating variable. The research employs a quantitative approach using Structural Equation Modeling (SEM) with AMOS 24, involving 105 households that benefit from regional development programs. The findings reveal that DAK exerts a positive and significant effect on per capita income, yet paradoxically also increases poverty levels. In contrast, DAU shows no significant influence on either per capita income or poverty levels. Per capita income itself demonstrates a positive and significant effect on poverty, indicating the presence of a poverty trap in Sabang City. Mediation analysis using the Sobel Test confirms that per cap ita income does not mediate the relationship between DAU and poverty, but functions as a partial mediator in the relationship between DAK and poverty. These results underscore that the effectiveness of fiscal instruments in reducing poverty is highly dependent on allocation mechanisms and equitable distribution. Consequently, more inclusive, equity-based, and sustainability-oriented fiscal policies are required to ensure that increases in per capita income genuinely contribute to poverty alleviation at the regional level.
Keywords: Special Allocation Funds (DAK); General Allocation Funds (DAU); Per Capita Income; Poverty Levels; Mediation; Poverty Trap.
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