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Journal : IIJSE

The Effect of Government Spending in the Education and Health Sectors on the Human Development Index (HDI) In Indonesia: An Ardl Approach Sembiring, Pebry Yola Sari Br.; Hidayat, Paidi; Syafii, M.
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 9 No 1 (2026): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v9i1.9234

Abstract

This study aims to analyze the effect of government spending on education and health on the Human Development Index (HDI) in Indonesia by including population size, open unemployment rate, and gender ratio as control variables. The analysis method used is Autoregressive Distributed Lag (ARDL) using time series data for the period 1990–2023 obtained from the Central Statistics Agency (BPS) and the Ministry of Finance of the Republic of Indonesia. The results show that in the short term, education expenditure has a positive and significant effect on the HDI, while health expenditure and population size have a negative and significant effect. Meanwhile, the open unemployment rate and gender ratio have a negative but insignificant effect. In the long term, education expenditure has a positive but insignificant effect, while health expenditure, population size, and gender ratio have a negative and significant effect on HDI. These findings indicate that HDI improvement is not solely determined by the amount of government spending, but rather by the effectiveness of budget management, population growth control, expansion of employment opportunities, and improvement of gender equality as prerequisites for sustainable human development.
Analysis of Economic Growth and Carbon Emissions in Indonesia Kinski, Natasya; Hidayat, Paidi; Suhaimi, Syech
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 9 No 1 (2026): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v9i1.9346

Abstract

The increase in greenhouse gas emissions particularly carbon dioxide, which remains a major global energy concern, continued to rise by 0.9 percent in 2022 following the COVID-19 pandemic. Indonesia ranks sixth globally as one of the largest emitters, with coal-based industries contributing the majority of its emissions. This study employs a quantitative approach using the variables of economic growth, energy consumption, deforestation, and foreign direct investment (FDI) over the period 1990–2022. The data were obtained from the World Bank and various international and Indonesian academic publications. The results show that economic growth significantly increases carbon emissions, whereas deforestation and FDI reduce emissions; energy consumption exhibits no significant effect. Overall, the findings indicate that rising carbon emissions in Indonesia are driven by environmentally unsustainable economic expansion, consistent with the Environmental Kuznets Curve (EKC) hypothesis. This is further supported by the impulse response function and variance decomposition analyses, which highlight the positive association between economic growth and carbon emissions. Meanwhile, deforestation and FDI do not contribute to higher emissions, and the transition toward more sustainable energy consumption in Indonesia results in an insignificant impact on emission growth