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All Journal Jurnal Ekonomi Pembangunan Signifikan : Jurnal Ilmu Ekonomi
Ramadanti, Sarindang Suci
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Economics, Econometrics & Finance

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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.
Economic Growth and Environmental Quality: A Study on Mineral-Rich Provinces in Indonesia Ramadanti, Sarindang Suci; Azwardi, Azwardi; Subardin, Muhammad
Signifikan: Jurnal Ilmu Ekonomi Vol 13, No 1 (2024)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/sjie.v13i1.40285

Abstract

Research Originality: This research focuses on Indonesia's mineral-rich provinces and offers originality through its comprehensive analysis of the bidirectional relationship between economic growth and environmental quality, using the Environmental Quality Index (EQI). Research Objectives: This study examines the relationship between economic growth and environmental quality in the Mineral Economy Provinces of Indonesia.Research Methods: The data used in this research is secondary data from 2015 to 2022. The analysis method employed is the simultaneous equation model using Two Stage Least Squares (2SLS).Empirical Results: The results show that in model 1, economic growth is significantly influenced by exogenous variables such as the environmental quality index, energy consumption, revenue sharing funds, investment, and population. In model 2, environmental quality is significantly influenced by exogenous variables such as GDP, mining output, energy consumption, and forest. Good environmental quality can enhance economic growth. Conversely, increased Economic growth can degrade environmental quality.Implications: The study's findings suggest that policymakers in Indonesia's mineral economy provinces should prioritize sustainable development to balance economic growth with environmental preservation.JEL Classification: Q43, Q50, Q56
Economic Growth and Environmental Quality: A Study on Mineral-Rich Provinces in Indonesia Ramadanti, Sarindang Suci; Azwardi, Azwardi; Subardin, Muhammad
Signifikan: Jurnal Ilmu Ekonomi Vol. 13 No. 1 (2024)
Publisher : Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/sjie.v13i1.40285

Abstract

Research Originality: This research focuses on Indonesia's mineral-rich provinces and offers originality through its comprehensive analysis of the bidirectional relationship between economic growth and environmental quality, using the Environmental Quality Index (EQI). Research Objectives: This study examines the relationship between economic growth and environmental quality in the Mineral Economy Provinces of Indonesia.Research Methods: The data used in this research is secondary data from 2015 to 2022. The analysis method employed is the simultaneous equation model using Two Stage Least Squares (2SLS).Empirical Results: The results show that in model 1, economic growth is significantly influenced by exogenous variables such as the environmental quality index, energy consumption, revenue sharing funds, investment, and population. In model 2, environmental quality is significantly influenced by exogenous variables such as GDP, mining output, energy consumption, and forest. Good environmental quality can enhance economic growth. Conversely, increased Economic growth can degrade environmental quality.Implications: The study's findings suggest that policymakers in Indonesia's mineral economy provinces should prioritize sustainable development to balance economic growth with environmental preservation.JEL Classification: Q43, Q50, Q56
Co-Authors Azwardi Azwardi Azwardi Subardin, Muhammad