SOCIAL WELFARE FROM AN ISLAMIC ECONOMIC PERSPECTIVE: AN EVALUATION OF LABOR FORCE PARTICIPATION, REGIONAL INCOME, AND ECONOMIC GROWTH IN LAMPUNG PROVINCE
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Abstract
Community welfare is the primary objective of regional development, reflected through the Human Development Index (HDI). This study analyzes the influence of the Labor Force Participation Rate (LFPR), Regional Original Revenue (PAD), and Gross Regional Domestic Product (GRDP) on the HDI of districts/cities in Lampung Province during 2020–2024 from an Islamic economic perspective. Panel data from 15 districts/cities were examined using regression analysis, with the Fixed Effects Model (FEM) identified as the most appropriate model. The findings reveal that GRDP has a positive and significant effect on HDI, while LFPR and PAD show positive but insignificant effects. Simultaneously, all three variables significantly affect community welfare. These results highlight that improving welfare in the Islamic economic perspective depends not only on economic growth but also on equitable development and resource management oriented toward public benefit (maslahah).
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