Journal of Indonesian Applied Economics
Vol. 11 No. 1 (2023): February 2023

The Effect of Natural Disaster on Regional Economic Growth, Unemployment, Poverty, and Human Development Index in Thirty Indonesian Provinces

Aulia Puja Ilham (Faculty of Economics and Business, Universitas Brawijaya)
Sri Muljaningsih (Faculty of Economics and Business, Universitas Brawijaya)
Sasongko Sasongko (Faculty of Economics and Business, Universitas Brawijaya)



Article Info

Publish Date
28 Feb 2023

Abstract

Purpose The objective of this research is to identify the effects of natural disasters on several variables. The impacts were analyzed both directly and indirectly. Design/methodology/approach Using Partial Least Squares, natural disaster, regional economic growth, poverty, unemployment, and human development index as the variables with their own indicators. Findings This study finds that the direct effects of natural disasters are a significant reduction in regional economic growth, an insignificant increase in poverty, and a significant increase in unemployment. Furthermore, natural disaster have varying results in indirect effects. Research limitations/implications                                                                                                                                                                                   The limitation of this research is the use of natural disasters which only involves three types of natural disasters, as well as thirty provinces in Indonesia. Originality/value This study uses regional economic growth, unemployment, and poverty variables as intervening variables to determine the effect of natural disasters on the human development index which there are still not many similar studies on the disaster economics approach.

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Journal Info

Abbrev

jiae

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and ...