Analyzing the effects of green sukuk on poverty alleviation in Indonesia

Abstract

This study aims to analyse the effect of Green Sukuk on poverty alleviation in Indonesia. Poverty alleviation is measured using the human development index (HDI), inflation, and unemployment rate. The type of research used is quantitative research with the time series data of Green Sukuk, human development index, inflation, and unemployment rate for the 2019-2023 and was analysed using the cointegration technique. VAR (Vector Auto-Regressive) and VECM (Vector Error Correction Model) were used to analyze the hypothesis with E-Views 12. The data used in this study were monthly data from each variable from 2018 to 2023. The results of the Granger causality test indicate a relationship between HDI and GSI, suggesting a short-term effect between these variables. This study showed that there is a cointegration effect between Green Sukuk on Poverty Alleviation through poverty rate, Human Development Index (HDI), inflation, and unemployment rate. The relationship between Green Sukuk, a Green Economy, Sustainable Development Goals (SDGs), and poverty alleviation is complex and interconnected. Green Sukuk, as Islamic bonds designed to finance eco-friendly projects, are pivotal in advancing a Green Economy by supporting sustainable development efforts.

Keywords

Green Sukuk, HDI, Inflation, Poverty, SDGs, Unemployment Rate

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DOI : https://doi.org/10.32698/aicoiis24586