Does Human Development Index Reduce Poverty in Central Sulawesi? District-Level Panel Evidence from an Islamic Economics Perspective

Della Magfira; N.Syamsu; Dede Arseyani Pratamasyari; Fatma; Syaakir Sofyan

doi:10.61255/jeemba.v4i5.1506

Authors

Della Magfira Universitas Islam Negeri Datokarama, Palu, Indonesia
N.Syamsu Universitas Islam Negeri Datokarama, Palu, Indonesia
Dede Arseyani Pratamasyari Universitas Islam Negeri Datokarama, Palu, Indonesia
Fatma Universitas Islam Negeri Datokarama, Palu, Indonesia
Syaakir Sofyan Universitas Islam Negeri Datokarama, Palu, Indonesia

DOI:

https://doi.org/10.61255/jeemba.v4i5.1506

Keywords:

Education, Health, Islamic Economics, Poverty, Unemployment

Abstract

Purpose – This research investigates the impact of education, unemployment, and health on poverty in Central Sulawesi Province. The study is motivated by the persistently high poverty rate and substantial disparities across districts and cities, highlighting the need for district-level empirical analysis.

Design/methodology/approach – This study employs a quantitative approach using balanced panel data from 13 districts/cities in Central Sulawesi during 2017–2024 (104 observations). Data from Statistics Indonesia (BPS) were analyzed using the Random Effect Model with education, unemployment, and health as the explanatory variables. Model selection was conducted using the Chow, Hausman, and Lagrange Multiplier tests, while robustness was examined by incorporating year fixed effects into the estimation model.

Findings/Results – The findings suggest that education and health have negative and statistically significant influences on poverty, while unemployment has a favorable albeit statistically negligible impact. Simultaneously, education, unemployment, and health significantly influence poverty, with an Adjusted R-squared value of 0.619 .

Originality/Value – This study provides district-level panel evidence on the determinants of poverty in Central Sulawesi by integrating panel data analysis with an Islamic economics perspective. The findings contribute to the formulation of poverty reduction policies through improvements in education and health, the expansion of employment opportunities, and the optimization of Islamic social finance instruments

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