Islamic Economic Perspective on Balancing Growth and Equity: A Quantitative Analysis of Inflation and Investment in ASEAN Economies

Rizal Mahmudin (1) , Madnasir (2) , Ersi Sisdianto (3)
(1) Faculty of Economics and Islamic Business, UIN Raden Intan Lampung, Indonesia, Indonesia ,
(2) Faculty of Economics and Islamic Business, UIN Raden Intan Lampung, Indonesia, Indonesia ,
(3) Faculty of Economics and Islamic Business, UIN Raden Intan Lampung, Indonesia, Indonesia

Abstract

This study examines the interplay between inflation, investment, unemployment, and poverty and their collective impact on sustainable economic growth within the ASEAN region over the period from 2018 to 2022. Employing a quantitative approach with panel data analysis, the research focuses on five developing ASEAN countries. The analysis reveals that both inflation and unemployment significantly influence sustainable economic growth, while investment and poverty also play critical roles in shaping economic outcomes. From an Islamic economic perspective, the findings highlight the necessity of balancing material growth with spiritual values, environmental stewardship, justice, ethics, and community empowerment. This study underscores that economic growth should not only focus on immediate gains but must also prioritize long-term sustainability, ensuring that development benefits both current and future generations. The implications of this research offer valuable insights for policymakers in developing holistic strategies that align with Islamic economic principles, promoting equitable and sustainable growth.

Full text article

Generated from XML file

References

Apriliana, R. (2021). The impact of MEER road development on economic growth in the concept of sustainable development in the Gunung Anyar area, Surabaya. Journal of Business Economics and Accounting, 1(3), 86-96. https://ejurnal.politeknikpratama.ac.id/index.php/jebaku/article/view/170/684

Arkum, D., & Amar, H. (2022). The Influence of Economic Growth, Human Development, Poverty and Unemployment on Income Distribution Inequality: Study in the Province of the Bangka Belitung Islands in 2005-2019. Jurnal Bina Praja, 14(3), 413-422. http://jurnal.kemendagri.go.id/index.php/jbp/article/view/1342

Armeanu, D. Ş., Vintilă, G., & Gherghina, Ş. C. (2018). Empirical study towards the drivers of sustainable economic growth in EU-28 countries. Sustainability (Switzerland), 10(1). https://doi.org/10.3390/su10010004

Efimova, O., Makeeva, E., & Dmitrieva, E. (2020). Approaches to the formation of sustainable economic development of transport systems. Proceedings of CBU in Economics and Business, 1, 45-48. https://doi.org/10.12955/peb.v1.17

Hasanah, R., & Panorama, M. (2021). The effect of unemployment rate on poverty rate in south sumatra in 2010-2020. Journal Ekonomi Pembangunan, 11(2), 651-662. https://ojs.uho.ac.id/index.php/JEP/article/view/27623

Hermawan. (2019). Educational research methodology (qualitative, quantitative and mixed methods). Hidayatul Quran.

Khaerani, A. N. (2018). The influence of attitudes, subjective norms and behavioral control on product purchase intentions at the umkm center in Tarakan city. Journal of Economics, 9(2), 13-24.

Kurniawan, D., Hermawan, W., Sunandi, I., & Fadhila, S. Z. (2021). Legal Approach to Environmental Issues in Sustainable Development: Challenges and Prospects. Journal on Education, 3(4), 643-658.

Lamatenggo, O. F., Walewangko, E. N., & Layuck, I. A. C. (2019). The Effect of Inflation, Economic Growth and Human Development Index on Unemployment in Manado City. Journal of Efficiency Scientific Periodicals, 19(02), 162-172. https://ejournal.unsrat.ac.id/v3/index.php/jbie/article/view/25011/24716

Larasati, I. S., & Sulasmiyati, S. (2018). The Effect of Inflation, Exports, and Labor on Gross Domestic Product (GDP). Journal of Business Administration (JAB), 63(1). https://administrasibisnis.studentjournal.ub.ac.id/index.php/jab/article/view/2694

Likuayang, A. A., & Matindas, E. C. (2021). Macroeconomic Comparison in the ASEAN Region During 2015-2018. Klabat Journal of Management, 2(1), 57-85. https://doi.org/10.31154/kjm.v2i1.559.57-85

Limijaya, A. (2014). Triple bottom line and sustainability,18(1), 14-27. https://doi.org/10.26593/be.v18i1.827.%25p

Lumentut, G. M., Kalangi, J. B., & Rompas, W. F. I. (2023). Analysis of Economic Growth and Total Labor Force on Unemployment in Manado City. Journal of Efficiency Scientific Periodical, 23(8), 1-12.

Mardiatillah, R., Panorama, M., & Sumantri, R. (2021). The effect of unemployment and inflation on the poverty rate in South Sumatra in 2015-2019. Performance: Journal of Economics and Management, 18(2), 279-287.

Nabila, F. (2022). The Effect of Exports, Imports and Inflation on Gross Domestic Product (Pdb) in Japan and Korea.

Pertiwi, A. T., Regina, I., & Sasongko, G. (2023). The Effect of Exports, Investment, Inflation and Unemployment on Economic Growth in Indonesia 1990-2020. Ekonika: Journal of Economics, Kadiri University, 8(1), 42-66. https://doi.org/10.30737/ekonika.v8i1.3115

Ria, L. L., Elia, A., & Hukom, A. (2022). Analysis of the Influence of Exports, Imports, Foreign Investment and Labor on Indonesia's GDP. Journal Magister Ilmu Ekonomi Universtas Palangka Raya: GROWTH, 8(2), 78-90. https://doi.org/10.52300/grow.v8i2.9166

Rumengan, P., Nangoi, G. B., & Rondonuwu, S. (2017). The Effect of Corporate Social Responsibility on Company Profitability at PT Bank Central Asia for the 2010-2015 Period. EMBA Journal: Journal of Economic Research, Management, Business and Accounting, 5(1).

Saad, W., & Kalakech, K. (2015). The Nature of Government Expenditure and its Impact on Sustainable Economic Growth. http://www.eurojournals.com/MEFE.htm

Samsudin, S. H. (2024). Green Economy: The Role, Policy and Strategy of Youth and Sports in Enhancing Economic Development. Adab Publisher.

Saputra, P. M. A. (2023). Analysis of the effect of inflation, exports, and unemployment on economic growth. Journal of Development Economic and Social Studies, 2(1), 11-25.

Saputri, B. P., Wahyuningsih, I., Prayoga, R. R. & Kurniawan, M. (2024). The Effect of Terrorism, Investment, and Government Expenditure on Economic Growth in Indonesia for the 2014-2023 Period. Budget Journal: Journal of Economics and Accounting Publications, 2(2). https://doi.org/10.61132/anggaran.v2i2.615

Saragih, C. A. M., Haryadi, H., & Emilia, E. (2021). The effect of gross domestic product, interest rates, and inflation on foreign direct investment in Indonesia for the period 2000-2017. Journal of Actual Economics, 1(1), 35-44. https://doi.org/10.53867/jea.v1i1.4

Sari, R. (2021). Random Effect Panel Data Regression Modeling with the Generalized Least Square (GLS) Method. Undergraduate Thesis: Universitas Lampung.

Sayedahmed, N. Y., & Abuznaid, S. A. (2019). Sustainable Development and Social Responsibility from an Islamic Perspective. Journal of Social and Political Sciences, 2(4). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3502157

Silitonga, D. (2021). The Effect of Inflation on Indonesia's Gross Domestic Product (Pdb) in the 2010-2020 Period. ESENSI: Journal of Business Management, 24(1), 2021.

Singh, H. P., Singh, A., Alam, F., & Agrawal, V. (2022). Impact of sustainable development goals on economic growth in Saudi Arabia: Role of education and training. Sustainability, 14(21), 14119. https://doi.org/10.3390/su142114119

Siregar, M. R. (2020). Sustainable Development in Islamic Development. Islamic Law, 20(1), 81-94.

Soeharjoto. (2016). The effect of foreign capital investment and level of competitive power on indonesia's manufactured industrial exports, 24(2).

Soeharjoto. (2018). Financial capability and performance of Kalimantan province. ACCOUNTABLE, 15(2), 131-138. http://journal.feb.unmul.ac.id/index.php/AKUNTABEL

Soeharjoto S., & Astrid Maria Esther. (2019). DETERMINANTS OF SUSTAINABLE ECONOMIC GROWTH IN ASEAN-3. Scientific Journal of Economics and Business, 16(2). https://doi.org/https://doi.org/10.31849/jieb.v16i2.2978

Solechah, W. M., & Sugito, S. (2023). Sustainable Economic Development as Indonesia's National Interest in the G-20 Presidency. Dialectics: Journal of Economics and Social Sciences, 8(1), 12-23. https://doi.org/10.36636/dialektika.v8i1.1487

Suharto, U. S., & Dharmala, R. (2016). Private investment, regional minimum wage and growth of large and medium industries on labor absorption in banten province. Journal of Economics-Qu, 6(1), 82-101. https://jurnal.untirta.ac.id/index.php/Ekonomi-Qu/article/view/4198

Sukardi, K. (2021). Multidimensional Poverty Analysis of the Gorong-Gorong Community of Kebun Sirih Village in Mimika Regency. Critical Journal (Policy, Research, and Innovation), 5(2), 62-79. https://ejournal.stiejb.ac.id/index.php/jurnal-kritis/article/view/172

Syaifullah, A., & Malik, N. (2017). The effect of human development index and gross domestic product on poverty rate in ASEAN-4 (Study on 4 ASEAN countries). Journal of Economics, 1(1), 107-119. https://doi.org/10.22219/jie.v1i1.6071

Wahyuningsih, E. S., Sagala, D. M., Rahmadani, Y., Arifah, A., & Sari, D. P. P. (2021). Analysis of Business Development Strategies during the Pandemic (Study of PT Indofood Sukses Makmur). Tambusai Journal of Education, 5(2), 3057-3065. https://jptam.org/index.php/jptam/article/view/1341

Walimuda, H. (2022). The effect of government spending, unemployment rate, inflation, and foreign direct investment on economic growth rate (case study of 8 ASEAN countries). http://digilib.unila.ac.id/58863/1/ABSTRAK.pdf

Authors

Rizal Mahmudin
rizalmahmudin24@gmail.com (Primary Contact)
Madnasir
Ersi Sisdianto
Mahmudin, R., Madnasir, & Sisdianto, E. (2024). Islamic Economic Perspective on Balancing Growth and Equity: A Quantitative Analysis of Inflation and Investment in ASEAN Economies. JIFA (Journal of Islamic Finance and Accounting), 7(1), 79–89. https://doi.org/10.22515/jifa.v7i1.9753

Article Details