Unlocking Growth: The Impact of Human Development and the Creative Economy on Economic Prosperity and Poverty Reduction in Indonesia

Document Type : Research Paper

Authors

1 Archipelago College of Economics, Mulawarman University, Kalimantan, Indonesia.

2 Archipelago College of Economics, Mulawarman University, Kalimantan, Indonesia

Abstract

This study examines the relationship between human development, the creative economy, economic development, and poverty structure in Indonesia. The primary objective is to explore how human development and the creative economy influence economic growth and poverty reduction. Using path analysis, this research investigates the direct and indirect effects of human development and the creative economy on economic development and poverty structure, focusing on variables such as education, health, income distribution, and employment opportunities. The results show that human development significantly enhances economic development, which, in turn, helps reduce poverty. Additionally, the creative economy contributes positively to economic growth, but its impact on poverty reduction has been limited due to uneven regional development. The study also reveals that economic development mediates the relationship between both human development and the creative economy with poverty structure. These findings emphasize the need for integrated policies that promote both human and economic development, ensuring equitable distribution of growth benefits. The implications of this research suggest that targeted investments in education, infrastructure, and support for creative industries, especially in underserved regions, are essential for fostering inclusive economic growth and reducing poverty in Indonesia. By strengthening human capital and creative sectors, Indonesia can achieve sustainable development and improve living standards across its diverse population.

Keywords

Main Subjects

References

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Iranian Economic Review
Volume 29, Issue 4
December 2025
Pages 1497-1525

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