Influence of Local Original Revenue and Economic Growth on Poverty Rate in Regency/City of Bali Province

. The purpose of this study are: (1) To analyze the influence of local original revenue on poverty rate in regencies/cities in Bali Province. (2) To analyze the influence of economic growth on the rate of poverty in regencies/cities in Bali Province. (3) To analyze the influence of local original revenue and economic growth simultaneously on poverty rate in regencies/cities in Bali Province. (4) To analyze the pattern of the relationship between economic growth and poverty rate in regencies/cities in Bali Province. The research sample was taken with purposive sampling technique in accordance with the objectives of the researcher with several considerations. Data collection is done with documentation techniques. The data analysis technique used is multiple regression techniques. The results of data analysis show that the local original revenue has a negative and significant influence on the rate of poverty in the regency/city government in Bali Province. Economic growth has a negative and significant influence on the rate of poverty in the regency/city government in Bali Province. Local original revenue and economic growth simultaneously have a negative and significant influence on poverty rate in regency/city governments in Bali Province. The pattern of the relationship between economic growth and poverty in each regency/city in the Province of Bali shows that the most ideal condition is achieved by the Badung Regency and Denpasar City including the category of regions where Economic Growth is high with a low poverty rate (Quadrant III). While other regencies in Bali Province have not reached ideal conditions.


Influence of Local Original Revenue and Economic Growth on Poverty Rate in Regency/City of Bali Province INTRODUCTION
The economic structure owned by the Province of Bali has its own uniqueness compared to other provinces in Indonesia. This uniqueness is because most of the community's sources of livelihood are sourced from the tourism sector, while other sectors act as supporting sectors. Likewise, the economic structure of each regency/city in Bali rests on the development of the tourism sector. Krisnandhi (2010) states that tourism promotion will bring a greater contribution, in terms of economic development, namely increasing foreign spending, generating business activities, providing more capital and employment, encouraging more production, and increasing per capita income.
With the enactment of local autonomy, each regency/city in Bali Province must manage its resources. Local autonomy is a form of the delegation of authority and responsibility carried out by the central government to local governments that have the authority to regulate their own regions both financially and non-financially. Therefore, local governments are required to further improve performance and be able to provide good and maximum services to the community. The granting of broad, real, and responsible authority expressed in the legislation is a reflection of the democratization process in the implementation of local autonomy to assist the central government in organizing governance in regions that focus on regency/city governments.
The consequence of the implementation of local autonomy is that the regency/city local governments in Bali Province must explore the potential sources of income, so as to increase Local Original Revenue. Olatunji et al. (2009) states that local government revenues mainly come from taxes. Local Original Revenue becomes the backbone used to finance local expenditure. Sources of local revenue are obtained and used to finance the administration of local government affairs, should have the ability to carry out the autonomy indicated by the significant role of local revenue in financing local expenditures which have implications for poverty alleviation in the relevant regency/city. Abdillah and Mursinto (2016) found that short-term fiscal decentralization and economic growth did not have a significant influence on poverty rates, while income inequality had a significant negative influence on local poverty rates. Fiscal decentralization and long-term economic growth have a significant and negative influence on local poverty rate. In the long run, local poverty rates have decreased in several provinces with high economic growth and high local income. Vincent (2009) argues that poverty is a major problem experienced by developing countries. Chen and Ravallion (2007) found that for developing countries, a clear decline in trends in the percentage of truly poor people was proven, although with uneven progress across the region, more success was found in reducing the total number of poor people. Kraay (2006) explains that in the medium to long term, most variations in changes in poverty can be attributed to growth in average income, indicating that policies and institutions that encourage broad-based growth must be at the center of the pro-poor growth agenda. Ocaya et al. (2012) investment is a strong link for economic growth and poverty reduction. Bakari (2017) long-term relationship shows that domestic investment has a negative influence on economic growth. However, in the short term, domestic investment causes economic growth.
Poverty is one of the diseases in the economy, so there must be a solution or policy to reduce poverty. The problem of poverty is a complex and complex problem and is multidimensional. Therefore, the policies made for poverty alleviation must be carried out in a comprehensive and integrated manner. The existence of a decrease in the rate of poverty in an area indicates that the development carried out has brought success. When the economy develops in an area, there is more income to spend, if it is well distributed among the population in the region it will reduce poverty. Kuncoro (2006: 18) states that theoretically economic growth plays an important role in overcoming poverty reduction Economic growth is an important condition for alleviating society from poverty, although economic growth can not stand alone to alleviate poverty, but economic growth becomes the main factor for alleviating poverty (Yudha, 2013). Poverty and economic growth are important indicators in achieving local development success. To improve development, each region will strive to optimize economic growth and reduce poverty. The emergence of the problem of the increasing number of people living below the poverty line occurs in developing countries including Indonesia which accompanies the achievement of economic growth in these countries (Jonaidi, 2012). Sameti and Farahmand (2009) stated that the link between poverty and economic growth can be explained by decreasing the productivity of labor, which is largely poor so that it will reduce the average production rate per worker, then low economic growth will further increase poverty.
The rate of economic growth in each regency/city in Bali Province varies and fluctuates, which can give an indication that economic growth in each regency/city in the Province of Bali is not fully able to overcome poverty caused by many factors. The growth rate of several sectors in each regency/city varies greatly depending on the characteristics of the sector in the regency/city. For regencies/cities in Bali that rely on tourism, it turns out that local original revenue received by each regency/city tends to increase, but economic growth is still fluctuating/unstable and poverty from year to year in each regency/city experiences a different decline. This can give an indication that economic growth in each regency/city is not fully able to overcome poverty. The results of empirical research also found that fiscal decentralization was not fully able to overcome the rate of poverty. Therefore, it is interesting to examine the relationship between the variables of local original revenue, economic growth with poverty rates and the pattern of the relationship between economic growth and poverty which is expected to be able to alleviate poverty quickly in regencies/cities in Bali Province.
Based on the above description, the objectives to be achieved in this study are: (1) To analyze the influence of local original revenue on poverty rate in regencies/cities in Bali Province.
(2) To analyze the influence of economic growth on the rate of poverty in regencies/cities in Bali Province.
(3) To analyze the influence of local original revenue and economic growth simultaneously on poverty rate in regencies/cities in Bali Province. (4) To analyze the pattern of the relationship between economic growth and poverty rate in regencies/cities in Bali Province.

Local Original Revenue
According to Darise (2008: 135) local original revenue, here in after abbreviated as local original revenue is income obtained by regions collected based on local regulations. While Halim (2008: 96) explained that the local original revenue is all local revenues originating from the region's original economic sources. Widianto at al. (2015) found that local original revenue has a negative and significant influence on poverty, capital expenditures negatively affect economic growth, and capital expenditures negatively affect poverty. Santoso (2013) states that PAD, DAU, DAK and DBH affect the amount of local poverty. Todaro and Smith (2006) state that economic growth is a long-term increase in capacity of the country concerned to provide various economic goods to its population. Coon et al. (2012) states that the economic basis is defined as the value of goods and services exported from an economic activity in an area. Fosu (2010) states that the development process requires rapid economic growth. Usually economic growth is something that is very much needed but economic growth is not enough to alleviate poverty. The more economic growth in a country, the higher the investment of a country, the higher investment, unemployment will decrease, if the unemployment rate is low, it will be directly proportional to the decline in poverty. Agyemang (2010) found that economic growth has led to a decrease in income and a decrease in human poverty in all developing countries. Setiyawati and Hamzah (2007) the influence of economic growth on poverty and unemployment shows a significant influence, but economic growth has a negative influence on poverty and has a positive influence on unemployment.

Poverty Rate
Alcock (2012) explains that poverty has become a major concern in the development of social policy. Son and Kakwani (2004) find that economic growth has a significant influence on poverty, but not on income inequality. Skare and Druzeta (2016) explain that facts support that when growth occurs, poverty decreases, no matter the rate of inequality. Identically, the same growth pattern has different influences on poverty reduction. Economic growth is good for poverty alleviation but that is not enough. Paat et al. (2017) found that local original revenue and economic growth had a negative and significant influence on poverty rates. Ouardighi and Kapetanovic (2010) explain that the concept of pro-poor growth focuses on the relationship between economic growth, inequality and poverty. Growth is not pro-poor because poverty and inequality deteriorate, while economic reforms seem to have a positive influence on welfare, but the overall influence is on small growth for most countries.

Pattern of Relationship between Economic Growth and Poverty
Region mapping based on economic growth and the percentage of poor people in Bali Province can be seen from the distribution patterns in each regency/city by using economic growth data and the percentage of poor people in each regency/city that is processed and then described using quadrant analysis. Typology Analysis Klassen uses two indicator comparisons divided into four plot areas based on the average value of economic growth and the percentage of the average poor population.  (2014) Note: ri = Local economic growth rate I; yi = Local Poverty Rate I; r = Economic growth rate of the reference area and y = Reference area poverty rate.
By determining the average rate of poverty as the vertical axis and the average economic growth as the horizontal axis, the observed area can be divided into four classifications, namely: Quadrant I is occupied by regencies/cities with economic growth values below the average and percentage of population poor above average. Quadrant II is occupied by regencies/cities with a value of economic growth above the average and the percentage of poor people above the average. Quadrant III is occupied by regencies/ cities with economic growth values above the average and the percentage of poor people below average. Quadrant IV is occupied by regencies/cities with below average economic growth and the percentage of poor people below average.
Based on a theoretical review and empirical research, the proposed hypothesis is as follows: 1. Hypothesis 1 (H1): Local original revenue has a negative and significant influence on poverty rate in regency/city governments in Bali Province. 2. Hypothesis 2 (H2): Economic growth has a negative and significant influence on the rate of poverty in the regency/city government in Bali Province. 3. Hypothesis 3 (H3): Local original revenue and economic growth simultaneously have a negative and significant influence on poverty rate in regency/city governments in Bali Province.

RESEARCH METHOD
The source of this research data is secondary data. Secondary data used is time series data for the last 6 years 2012-2017 for each regency/city in the Province of Bali which consists of: Local original revenue data, economic growth and poverty rate. Secondary data was obtained from the Bali Provincial Statistics Agency. Data collection is done by using documentation techniques, namely by taking documented data that has been published by the BPS of Bali Province. Purposive sampling is a sample determination technique with certain considerations (Sugiyono, 2012: 78 (Ghozali, 2012: 110). The D-W number between -2 to +2, means there is no autocorrelation (Santoso, 2012: 243). To analyze the pattern of the relationship between Economic Growth and Poverty Rate in each regency/city in Bali Province, Klassen Typology analysis tools are used.

RESULTS AND DISCUSSION
The results of the classic assumption test: The linearity test between local original revenue and poverty rate, economic growth with poverty rate by Lack of fit test shows that the relationship between local original revenue and poverty rate, Deviation from Linearity with Sig. 0.638. The relationship between economic growth and poverty rates, Deviation from Linearity Sig. 0.470. So, both Deviation from Linearity is greater than 0.05, which means that the relationship is linear. Data normality test is based on the One-Sample Kolmogorov-Smirnov Test. For data normality with regard to Asymp. Sig. (2-tailed) greater than 0.05. This means that all of these variables are normally distributed. For autocorrelation, the Durbin-Watson number is 2,001. The number D-W 2.001 is located between -2 to +2, meaning there is no autocorrelation (Santosa, 2012: 243). Homoscedasticity test using Rho Spearman Test, where Sig. (2-tailed) local original revenue (0.248), economic growth (0.545). So, the second is Sig. (2-tailed)> 0.05, which means homoskedasticity is met. Multicollinearity test in which the tolerance of local original revenue and economic growth = 0.813 is greater than 0.10 and VIF is both = 1.230 < 10 which means that there is no multicollinearity. Thus, the multiple regression model fulfills the prerequisites for testing classical assumptions and is suitable for use.

Influence of Local Original Revenue on Poverty Rate
Hypothesis 1 (H1): Local original revenue has a negative and significant influence on the rate of poverty. To answer this hypothesis, the SPPS 24 output can be shown in Table 2: Coefficients t Test Results below: Based on Table 2 of the T Test Results Coefficients, for Local revenue it is known that t = -5.076 with Sig. t is 0,000. Results Sig. t = 0,000 which is smaller than 0.05, meaning that the regression coefficient of local original revenue is significant. This means that the local original revenue has a significant influence on the rate of poverty. The regression coefficient is found to be negative, so it can be interpreted that the local original revenue has a negative influence on the rate of poverty. This means that if the local original revenue increases, the Poverty Rate will decrease/ decrease. So, Hypothesis 1 (H1) which states: Local original revenue has a negative and significant influence on the rate of poverty proven or acceptable. This research is in line with the opinion of Kraay (2006) explaining that in the medium to long term, most variations in changes in poverty can be attributed to growth in average income. Abdillah and Mursinto (2016) stated that fiscal decentralization and long-term economic growth have significant and negative influences on local poverty rates.

Influence of Economic Growth on Poverty Rates
Hypothesis 2 (H2): Economic growth has a negative and significant influence on the rate of poverty. To answer this hypothesis, the SPPS 24 output can be shown in Table 3 of the Coefficientsa t Test Results below: Based on Table 3 of the Coefficients of T Test Results, for economic growth it can be seen that t = -3.789 with Sig. t is 0,000. Results Sig. t = 0,000 smaller than 0.05 means that the economic growth regression coefficient is significant. This means that economic growth has a significant influence on the rate of poverty. The regression coefficient is found to be negative, so it can be interpreted that economic growth has a negative influence on the rate of poverty. This means that if economic growth increases, the rate of poverty will decrease/decrease. So, Hypothesis 2 (H2) which states that economic growth has a negative and significant influence on the rate of poverty is proven or acceptable. This research is consistent with the findings of Yudha (2013), Jonaidi (2012), Setiyawati and Hamzah (2007), Sameti and Farahmand (2009) that economic growth is closely related to poverty.

Influence of Local Original Revenue and Economic Growth on Poverty Rates
Hypothesis 3 (H3): Local original revenue and economic growth simultaneously have a negative and significant influence on the rate of poverty. To answer this hypothesis, the SPPS 24 output can be shown in Table 4 of the F Test Results below: Testing the influence of local original revenue and economic growth simultaneously on poverty rate by considering the results of the F Test shown in Table 4 F Test Results, where it was found that F = 34,918 with Sig. 0,000. The significance result of F (Sig. F = 0,000) is smaller/less than 0,05 so it can be interpreted that the coefficient is significant. This means that local original revenue and economic growth simultaneously have a significant influence on the rate of poverty. The regression coefficient is found to be negative, so it can be interpreted that local original revenue and economic growth have a negative influence simultaneously on the rate of poverty. This means that if the local original revenue and economic growth are simultaneously increased, the poverty rate will decrease significantly. So, Hypothesis 3 (H3) which states: Local original revenue and economic growth simultaneously have a negative and significant influence on the rate of poverty proven or acceptable. This research is in line with Paat et al. (2017) which found that local original revenue and economic growth had a negative and significant influence on the rate of poverty.

Pattern of Relationship between Economic Growth and Poverty
The pattern of the relationship between economic growth needs to be analyzed to what extent the economic growth of each regency/city in Bali Province is in line with the alleviation of the rate of poverty. Basically, economic growth affects the rate of poverty, but there are those whose influence is large and of course there is also a small influence. For this reason Klassen typology will be able to map the categories of each regency/city in the Province of Bali related to the relationship between economic growth and poverty. Average economic growth and poverty rates of regencies/cities and average economic growth and poverty rates of Bali Province need to be known as a comparison. Table 5 below describes the average economic growth and poverty rate of regencies/cities in Bali from 2012-2017 and the average economic growth and poverty rate of Bali Province from 2012-2017. Based on the data in Table 5 above, each regency/city in Bali Province can be grouped into the appropriate quadrant. For this reason, the distribution of regencies/cities in Bali Province is based on the average of economic growth and poverty rate from 2012-2017 as Table 6 below.

Quadrant I
First, Jembrana, Tabanan, Klungkung, Bangli, Karangasem and Buleleng Regencies are included in Quadrant I because the regency has an average economic growth rate that is smaller and the poverty rate is higher than the average of Bali Province. The challenge faced is that the local government must work hard to accelerate economic growth through increasing productivity in various sectors and economic activities that are able to absorb large workers, especially from the poor. Local governments are also required to improve the influence rate and efficiency of various poverty reduction policies and programs.

Quadrant II
Second, Gianyar Regency is included in Quadrant II because Gianyar Regency has an average rate of economic growth higher than the average rate of economic growth in Bali Province, but the average poverty rate is higher than the average poverty rate of Bali Province. High economic growth in this area has not given a significant impact on poverty reduction. The challenge that must be faced by the local government is to encourage the development of economic activities in sectors that absorb large numbers of workers from the poor. In addition, programs and policies are also needed in terms of poverty reduction so that poverty reduction becomes faster.

Quadrant III
Third, Quadrant III is an area that has a higher rate of economic growth than the average of Bali Province, with a poverty rate lower than the average of Bali Province. So, regencies/cities in Bali Province that enter Quadrant III are Badung Regency and Denpasar City. High economic growth in this area has significantly affected the poverty rate. This shows the ideal conditions. The challenge that must be faced by the local government is to maintain the influence rate and efficiency of policies and programs for poverty reduction on an ongoing basis and continue to be improved.

Quadrant IV
Fourth, this Quadrant IV is a region with a lower rate of economic growth and a lower poverty rate than the average province of Bali. None of the regencies/cities in Bali Province are included in Quadrant IV. Basically economic growth affects the rate of poverty, but each regency/city in the Province of Bali based on the results of the mapping shows that the impact of economic growth on the reduction in poverty rates is felt most significantly by Badung Regency and Denpasar City. This shows that Badung Regency and Denpasar City have achieved ideal conditions. This is understandable because Badung Regency and Denpasar City are in addition to high economic growth, as well as high Local original income, so that the acceleration of poverty alleviation is more real. While other regencies in Bali Province have not shown an ideal result regarding the relationship between economic growth and poverty.

CONCLUSIONS AND SUGGESTIONS
Conclusions that can be submitted to answer the research objectives are: (1) Local original revenue has a negative and significant influence on the rate of poverty in the regency/city government in Bali Province.
(2) Economic growth has a negative and significant influence on the rate of poverty in the regency/city government in Bali Province. (3) Local original revenue and economic growth simultaneously have a negative and significant impact on poverty rate in regency/city governments in Bali Province. (4) The pattern of the relationship between Economic growth and poverty in each regency/city in the Province of Bali shows that the most ideal condition is achieved by the Badung Regency and the City of Denpasar including the category of regions with High Economic Growth with Low Poverty Rate (Quadrant III). While other regencies in Bali Province have not reached ideal conditions. Gianyar occupies the first quadrant with high economic growth, but the rate of poverty is high. Jembrana, Tabanan, Klungkung, Bangli, Karangasem and Buleleng regencies are included in Quadrant I because these regencies have an average economic growth rate that is smaller and the poverty rate is higher than the average of Bali Province.
Based on these conclusions, the suggestions that can be submitted are each regency/city in the Province of Bali should continue to improve both local original revenue and spur economic growth to reduce/reduce the rate of poverty. Considering that not every regency/city in the Province of Bali, where economic growth is not necessarily accompanied in line with the reduction in the poverty rate, the area needs to harmonize between economic growth and a decrease in poverty. Local original revenue and economic growth need to be improved so that it has implications for reducing the poverty rate in order to improve the welfare of the people in the regency concerned based on the potential of the region.