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All Journal EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis Dinamisia: Jurnal Pengabdian Kepada Masyarakat Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi KEUDA : JURNAL KAJIAN EKONOMI DAN KEUANGAN DAERAH International Journal of Applied Business and International Management Indo-Fintech Intellectuals: Journal of Economics and Business Society Global Academy of Business Studies
Mollet, Julius Ary
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Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Energy Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Social Sciences Other

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Unlocking Development In Papua: The Reciprocal Relationship between Economic Growth and HDI Under Special Autonomy Lefaan, Yosef; Joni, Joni; Hartiningsih, Endang; Mollet, Julius Ary; Liga, Marthen
EKUILIBRIUM : JURNAL ILMIAH BIDANG ILMU EKONOMI Vol 21 No 1 (2026): March
Publisher : Universitas Muhammadiyah Ponorogo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24269/ekuilibrium.v21i1.2026.pp1-19

Abstract

This study examines the bidirectional relationship between economic growth and human development in Indonesia’s Papua Region, a context characterized by persistent welfare disparities despite the implementation of Special Autonomy. Utilizing a balanced panel dataset covering Papua and West Papua provinces, the research applies a dual fixed-effects panel regression model estimated via Feasible Generalized Least Squares with Panel-Corrected Standard Errors to probe the nuanced feedback connections between Gross Regional Domestic Product (GRDP) per capita and the Human Development Index (HDI). The investigation confirms a vigorous, reciprocal, and mutually augmenting association between economic advancement and human progression, where increases in per capita GRDP significantly predict improvements in HDI, and advancements in HDI in turn drive substantial elevations in regional economic output. Beyond the core economic and human development variables, electricity consumption per capita emerges as a consistent, positive catalyst in both models, functioning as a "keystone catalyst" that simultaneously supports standard of living improvements and economic productivity. Conversely, population growth is identified as exerting a drag on per capita income, highlighting a "denominator effect," where rapid demographic expansion dilutes economic gains even as it expands the potential human capital base. The findings substantiate the existence of a virtuous cycle of development in Papua but underscore that achieving inclusive welfare outcomes requires integrated policy interventions that synchronize economic productivity, human capability enhancement, and energy infrastructure expansion.
Co-Authors Anggraeni Wahyu Murti Charly M. Bisay Devina Petrina Dolame, Penegi Endang Hartiningsih Endro Risdiyanto Ervina Indrayani Fallah, Syaikhul Genoveva Chatleen C. Mollet Halomoan Hutajulu Hamzah, Hardi Hutajulu , Halomoan Joni Lefaan, Yosef Mantayborbir, Vyona Marthen Liga Octolia Togibasa Orpaniati Rantepulung Petrina, Devina Pisi Bethania Titalessy Sinaga, Novayanti Syaikhul Falah Udin, Moh. Nur Hafiz Usman Funangi Westim Ratang Zulhendri Zulhendri