Testing the Effects of Economic Growth, and the Role of the Agriculture, Forestry and Fisheries Sectors, and Other Influential Factors in Forming Community Welfare

Abstract

The welfare and poverty of farmers are still being discussed by researchers regarding economic growth, the role of the agricultural, fisheries, and forestry sectors, as well as other factors. This research aims to analyze the achievements of economic growth, the role of the agricultural, fisheries, and forestry sectors in the economy, as well as the influence of income inequality, labor absorption, and infrastructure factors on welfare. This research was conducted in Southeast Sulawesi Province, Indonesia. Using a quantitative approach to test the relationship between variables based on secondary data during the 2013-2022 period. Data were analyzed using panel data regression. The results of the analysis show that the economic growth of Southeast Sulawesi Province in the last ten years has been less than encouraging, the same thing also happened in important sectors contributing to GRDP, namely the Agriculture, Forestry, and Fisheries Sectors. Furthermore, economic growth, economic inequality, employment, and infrastructure are proven to be able to have a direct influence in creating social welfare, but on the other hand, the Agriculture, Forestry, and Fisheries sectors have a negative influence. The factor that plays the most role in determining social welfare is income inequality. Then successively followed by infrastructure, employment, and finally economic growth.