The Effect of the Islamic Human Development Index and Economic Growth on Poverty with Unemployment as an Intervening Variable
DOI:
https://doi.org/10.58764/j.im.2026.7.240Keywords:
Islamic economics, PLS-SEM, poverty, unemployment, maqasid al-shariah, economic growth, Islamic Human Development IndexAbstract
Aim: This study analyzes the direct and indirect effects of the Islamic Human Development Index (IPMI) and economic growth on poverty, with unemployment as an intervening variable, in Indonesia. Method: A quantitative associative design was applied to secondary panel data from 34 Indonesian provinces for 2016–2022, obtained from Statistics Indonesia (BPS) and related publications. Path analysis was conducted using Partial Least Squares–Structural Equation Modeling (PLS-SEM) in SmartPLS 3.0, with single-indicator formative constructs and bootstrapping at the 5% significance level. Results: IPMI has a significant negative effect on poverty (? = ?0.273; p = 0.001) and unemployment (? = ?0.337; p < 0.001). Economic growth significantly reduces poverty (? = ?0.200; p = 0.001) but significantly increases unemployment (? = 0.236; p < 0.001), indicating jobless growth. Unemployment has no significant effect on poverty (? = ?0.073; p = 0.272) and does not mediate the effects of IPMI or economic growth on poverty. Novelty/implication: The study tests two pathways simultaneously, namely human development grounded in maq??id al-shar?‘ah and economic growth, within one mediation model covering all provinces. The findings support structural poverty theory: poverty reduction requires comprehensive human development, inclusive growth, decent job quality, and fair wealth distribution rather than a mere decline in the unemployment rate.
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