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Journal : Jurnal Ekonomi Pembangunan

Economic, Environment, and Social Welfare in the Mineral Economy Provinces of Eastern Indonesia Ramadanti, Sarindang Suci; Azwardi; Subardin, Muhammad
Jurnal Ekonomi Pembangunan Vol. 22 No. 02 (2024): Jurnal Ekonomi Pembangunan
Publisher : Pusat Pengkajian Ekonomi dan Kebijakan Publik

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22219/jep.v22i02.34599

Abstract

This study explores the relationships between economic growth, environmental quality, and social welfare in the mineral economy provinces of Eastern Indonesia, which are heavily dependent on the mining sector—using simultaneous equation models and secondary data from 2015–2022. Empirical results show a bidirectional causal relationship between EQI and HDI, suggesting that improvements in environmental quality enhance human development, and higher human development levels contribute to better environmental quality. Additionally, a unidirectional causal relationship between EQI and GDP indicates that improvements in environmental quality can lead to economic growth. Still, economic growth alone does not necessarily lead to improvements in environmental quality.