| Summary: | Good governance and poverty alleviation were closely related because the
good governance could influence the poverty level through the quality of the
public services delivered by a government regime. The difference between
successful economy and unsuccessful economy was found in the government
institutional policies or infrastructures that supported economic activities. Good
infrastructures would support production and the production subsequently
supported the economic activities. The difference between rich country
institutions and poor country institutions also played an important role. It was
because the government institutions were the ones that created both formal and
informal rules.
The high level of the poverty in West Papua province took place because of
the lack of the good governance with the main variables of low participation of
people in public policy making (i.e., voice and accountability), the low quality of
public services, bureaucracy, bureaucratic independence, and government
credibility in the implementation of the policies (i.e., government effectiveness),
the lack of public policies that created conducive business climate (i.e., regulatory
quality) and the weak law enforcement (i.e., rule of law).
The study aimed at analyzing how significant was the impact of the good
governance variables on the poverty level of West Papua province.
The dependent variable of the study was poverty level, while the
independent variables were voice and accountability, government effectiveness,
regulatory quality and rule of law. Econometric method was used to analyze the
impact of the good governance on the alleviation of the poverty in West Papua
province in the perspective of new institutional economy using logistic binary
regression analysis. The appropriateness of the study�s model was measured using
Chi square value with Hosmer and Lemeshow�s goodness of fit test.
The results of the estimation using the logistic binary method showed that
there were three variables that had significant impact on the probability of the
poverty level in Wes Papua province. The three variables were voice and
accountability, regulatory quality and rule of law, while the variable of
government effectiveness did not have any significant impact.
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