Evaluating the Impact of Economic Growth, Income Inequality, and Investment on Community Welfare: A Case Study of Southeast Sulawesi, Indonesia
DOI:
https://doi.org/10.31098/issues.v5i2.3505Keywords:
Welfare, Economic Growth, Income Inequality, Labor Absorption, Infrastructure, Sustainable DevelopmentAbstract
In the field of Urban and Regional Planning, achieving community welfare is a fundamental aspect in formulating sustainable and equitable development policies. This issue remains a major concern in efforts to improve economic connectivity between urban and rural areas. Various strategies have been implemented, ranging from direct assistance programs to special budget allocations at the village and sub-district government levels. However, despite the implementation of these policies, the debate on the determinants of community welfare continues. Factors such as economic growth, income inequality, labor absorption, infrastructure availability, and investment levels play an important role in shaping these dynamics. This study aims to examine how these factors affect community welfare, with a particular focus on Southeast Sulawesi Province, Indonesia. The panel data regression method is used to investigate the causal relationship between economic variables and community welfare levels, using data from the Central Statistics Agency of Southeast Sulawesi Province from 2012 to 2021. The results show that economic growth, income inequality, labor absorption, infrastructure, and investment significantly affect community welfare. Among these factors, employment shows the strongest impact, indicating that higher employment rates contribute substantially to improved welfare. Income inequality is also shown to have a significant impact, with rising inequality associated with lower welfare. Furthermore, investment and infrastructure development show positive impacts by improving public facilities and creating employment opportunities. Interestingly, although economic growth is theoretically expected to improve welfare, the results show that its effect is less pronounced compared to other variables.
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Copyright (c) 2025 Hasddin, Jacob Breemer, Abd. Azis Muthalib, La Ode Suriadi, Lapipi, La Karimuna, Melati, Rola Pola Anto, Misnawati, Nartin, Asri Nova Rama
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