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This paper aims to analyze the determinants of poverty in Gunungkidul Regency in 2006. It<br />analyses SUSENAS data using the logit model with the estimation method of Maximum Likelihood<br />Estimator (MLE). The variables included in the model are the characteristics of demography,<br />economic factors, residential region and business loan. The result shows that<br />poverty in Gunungkidul Regency is associated with residential region, household size, level<br />of employment in agricultural sector, level of education, and the age of household’s head. It<br />also shows that household size is the main source of poverty. In addition, business loan is of<br />important determinant factors in poverty reduction.<br />Keywords: demography, poverty, household size, business loan