The Effect Of Oil And Gas Productivity, Oil And Gas Exports, And Labor Force Participation Rate On General Welfare In Indonesia

Abstract

This study examines the impact of Oil and Gas Productivity, Oil and Gas Exports, and Labor Force Participation Rate on the welfare of the Indonesian people from 2002 to 2021 using BPS data. With a quantitative approach, this study uses the SEM-PLS analysis method using Smart PLS 3.3 to test its hypothesis. This study reveals that oil and gas exports contribute positively to welfare by increasing people's access to various goods and services. In contrast, labor force participation and oil and gas productivity do not show a significant effect on welfare, where labor force participation can have varying impacts depending on productivity, and oil and gas productivity can lead to environmental damage that is detrimental to the quality of life. This study has the potential to provide insights for economic development and policy making by the Indonesian government to improve people's welfare.