Measuring Village Fund Efficiency on Socioeconomic Outcomes: A Dual-Method Approach

Abstract

Village fund management constitutes a strategic initiative aimed at addressing issues related to poverty and unemployment at the local level. However, numerous villages continue to encounter difficulties in optimizing the efficiency of fund utilization, which is anticipated to yield significant socioeconomic impacts. This study seeks to evaluate the efficiency of village funds and to analyze the correlation between various input variables and output indicators, specifically poverty and unemployment levels. The methodological approach employed in this research is Data Envelopment Analysis (DEA) to assess efficiency, followed by linear regression to investigate the relationships among the variables. The findings indicate a notable variation in the efficiency of village fund utilization, which positively contributes to the alleviation of poverty and unemployment. These results underscore the necessity for a participatory approach and the development of more adaptive policies in village fund management to achieve sustainable outcomes and enhance community welfare.