Rangkiang: Journal of Islamic Economics and Business

Determinants of Poverty Levels in Regencies and Municipalities of West Sumatra

Sahri Fitri — 2026-06-30

This study aims to analyze the effect of the Human Development Index (HDI) and Gross Regional Domestic Product (GRDP) growth on poverty levels in regencies and municipalities of West Sumatra Province. This research employs a quantitative approach with an associative research design. The study uses secondary data obtained from the Central Bureau of Statistics (BPS) and other relevant institutions, covering 19 regencies and municipalities in West Sumatra. Panel data regression analysis was applied using statistical software to examine the relationship between the variables. The findings reveal that HDI has a significant and negative effect on poverty levels, as indicated by a significance value of 0.000. This result suggests that improvements in human development contribute to reducing poverty. In contrast, GRDP growth does not significantly affect poverty levels, with a significance value of 0.710. Simultaneously, HDI and GRDP growth significantly influence poverty levels, with a significance value of 0.000. The coefficient of determination (R²) indicates that both variables explain 52.8% of the variation in poverty levels, while the remaining 47.2% is influenced by other factors not included in the model. These findings highlight the importance of improving human development through better education, health services, and living standards as an effective strategy for poverty reduction. Therefore, local governments should prioritize human development policies while promoting inclusive and equitable economic growth to achieve sustainable poverty alleviation.

Global Halal Market and Economic Development in Muslim Countries: A Systematic Literature Review from the Perspective of Maqashid al-Shariah

Ahmad Luthfi — 2026-06-30

This study aims to synthesize the existing literature on the global halal market and analyze its contribution to the economic development of Muslim countries from the perspective of maq??id al-shar?‘ah. The study employs a Systematic Literature Review (SLR) approach based on the PRISMA 2020 framework. Literature was collected from the Scopus and Web of Science databases covering publications from 2019 to 2024. From an initial set of 52 articles, 20 studies met the inclusion criteria and were analyzed using thematic synthesis. The findings identify four dominant themes: global halal market expansion, halal supply chain development, the contribution of the halal industry to economic development, and the integration of halal governance with Islamic finance. The results suggest that the halal industry has the potential to enhance export competitiveness, strengthen small and medium enterprises (SMEs), create employment opportunities, and support sustainable economic development in Muslim countries. However, several challenges remain, including fragmented halal certification systems, regulatory inconsistencies, limited technological capabilities, and weak integration between halal industries and Islamic financial institutions. This study contributes theoretically by integrating halal economy literature with the framework of maq??id al-shar?‘ah and offers a conceptual foundation for developing a more inclusive, competitive, and sustainable halal ecosystem in Muslim countries.

International Monetary System Dynamics and Global Economic Stability: A Systematic Literature Review

Boedi Satria — 2026-07-27

The international monetary system continues to evolve due to increasing global economic integration, changes in the international currency structure, and advances in digital financial technology. These developments significantly influence global economic stability through exchange rates, capital flows, and financial market integration. This study aims to analyze the dynamics of the international monetary system, identify the key factors driving its transformation, and examine their implications for global economic stability. A Systematic Literature Review (SLR) was conducted following the PRISMA guidelines using articles retrieved from the Scopus, ScienceDirect, Springer, Emerald Publishing, and Taylor & Francis databases. After the screening process, 29 eligible articles were selected and analyzed using thematic and narrative synthesis. The findings indicate that the international monetary system is primarily shaped by the dominance of the US dollar, monetary policies in advanced economies, financial globalization, international economic crises, and the emergence of Central Bank Digital Currencies (CBDCs). These factors affect exchange rate stability, capital mobility, financial system resilience, and the risk of cross-border crisis transmission. Meanwhile, dedollarization, the growing role of the Chinese yuan, and CBDC adoption present opportunities for a more multipolar and inclusive monetary system despite governance and regulatory challenges. The study contributes by providing a comprehensive synthesis that integrates the drivers, implications, and future prospects of international monetary system transformation into a unified conceptual framework for future research and policymaking.

The Effects of Higher Education and Health on the Open Unemployment Rate in Indonesia

Elsya Putri Harahap — 2026-06-29

Open unemployment remains one of Indonesia's major socioeconomic challenges because it reflects the economy's ability to absorb labor and optimize human capital. Although higher education participation and public health indicators have improved over the past three decades, empirical evidence regarding their long-term influence on open unemployment using national time-series data remains limited and inconclusive. This study aims to examine the effects of higher education and health on Indonesia's open unemployment rate during the 1994–2023 period. A quantitative approach with a descriptive-associative design was employed using secondary time-series data obtained from the World Bank Open Data. Open unemployment rate was used as the dependent variable, while higher education was proxied by School Enrollment, Tertiary, and health was measured by Life Expectancy at Birth. Multiple linear regression analysis was conducted after fulfilling the classical assumption tests, including normality, multicollinearity, heteroscedasticity, and autocorrelation using the Cochrane Orcutt procedure. The findings reveal that higher education has a negative and statistically significant effect on the open unemployment rate, indicating that increased participation in tertiary education enhances human capital quality and improves employment opportunities. Conversely, health does not significantly affect open unemployment. Simultaneously, higher education and health significantly influence open unemployment, with an Adjusted R² value of 0.472, indicating that both variables explain 47.2% of the variation in unemployment, while the remaining variation is explained by other economic factors. These findings highlight that higher education plays a more dominant role than health in reducing open unemployment in Indonesia.