Causality Analysis Of Human Developman Index On Economic Growth To Support SDGs In South Sulawesi
DOI:
https://doi.org/10.55227/ijerfa.v4i2.418Keywords:
Economic Growth, Human Development Index (HDI), Granger Causality, South Sulawesi.Abstract
This quantitative study analyzes the causality and cointegration between the Human Development Index (HDI) and Economic Growth (EG) in 10 Regencies/Cities in South Sulawesi during the 2015-2024 period, supporting the achievement of SDGs. Using the Granger Causality Test and VECM, the results reveal a long-term cointegration between EG and all HDI components (LE, AYS, PCE). Causality analysis indicates a strong Two-Way Causality relationship between HDI, AYS, and PCE on EG. Conversely, a One-Way Causality exists from EG to LE. The findings conclude that while Economic Growth acts as the main short-term adjuster, sustained investment in human quality, especially education and purchasing power, is crucial as the primary capital for achieving stable and sustainable economic development in South Sulawesi
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