Nufus, Naily Hayatun (2025) THE EFFECT OF HUMAN DEVELOPMENT INDEX (HDI) AND POVERTY ON ECONOMIC GROWTH IN PAPUA PROVINCE AN ISLAMIC ECONOMICS PERSPECTIVE. S1 Undergraduate thesis, Universitas Darussalam Gontor.

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Abstract

Sustainable economic growth is influenced by various factors, one of which is the level of human development and poverty, which remain major challenges in Papua. Generally, economic growth is measured by calculating the percentage increase in Gross Domestic Product (GDP) at the national level, and Gross Regional Domestic Product (GRDP) at the provincial or district/city level. The Human Development Index measures a country's socio-economic development and combines education, health, and real per capita income. Poverty is not merely a matter of low income but a multifaceted phenomenon involving various interconnected aspects. In the perspective of Islamic economics, human development, which encompasses physical, social, and spiritual aspects, is expected to strengthen a just economy. Poverty reduction through policies based on communal welfare is highly relevant in improving the quality of life for the people of Papua, which will ultimately drive inclusive and sustainable economic growth.This study examines the influence of the Human Development Index (HDI) and poverty on economic growth in Papua Province. This research employs a quantitative method using time series data from the Papua Province Central Statistics Agency, spanning from 2016 to 2023. Multiple linear regression analysis, processed using Eviews 10, was used for data analysis. The analysis results indicate that neither the Human Development Index nor poverty has a significant impact on (0.1633 > 0.05) economic growth in Papua Province. This is likely due to the fact that economic growth is influenced by numerous other factors that have a more substantial impact on (0.2073 > 0.05) economic growth in Papua Province. The theoretical implication of the Endogenous theory is that increasing the Human Development Index in Papua Province not only improves the quality of life but also becomes the main driver of economic growth. Keywords: Economic Growth, Human Development Index, Poverty

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