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SUSTAINABLE DEVELOPMENT GOALS DAN DINAMIKA PERTUMBUHAN EKONOMI INKLUSIF DI NEGARA OKI
This study aims to analyze the impact of industrialization, labor force, Human Development Index (HDI), and environmental degradation on the Inclusive Growth Index (IGI) in the member countries of the Organization of Islamic Cooperation (OIC). The study employs panel data from selected OIC countries over a specific observation period using a dynamic panel model approach, namely the Difference Generalized Method of Moments (GMM), to address issues of endogeneity and dynamic bias. The estimation results indicate that industrialization has a positive and significant effect on IGI, suggesting that strengthening the manufacturing sector contributes to more inclusive economic growth. In contrast, labor force and HDI exhibit a negative and significant impact on IGI. These findings imply the existence of a structural mismatch between the increase in the quantity and quality of human resources and the economic structure’s capacity to absorb them productively. Meanwhile, environmental degradation does not show a significant effect on IGI within the estimated model. The findings confirm that inclusive growth in OIC countries largely depends on the quality of structural transformation. Industrialization that is integrated with the creation of productive employment opportunities and relevant human development policies constitutes a key driver in promoting economic growth that is not only high but also equitable and sustainable.
FAKULTAS EKONOMI DAN BISNIS ISLAM, UIN SUNAN KALIJAGA YOGYAKARTA
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