The Role of Investment on Social Welfare, Economic Growth, and Labor Absorption: Cases in Mineral Mining Areas

Abstract

The main objective of the development of a country is to realize social welfare or what is commonly termed prosperity. Investment is seen as one of the key drivers in creating social welfare. Another opinion is that prosperity will be realized when there is an improvement (growth) in the economy, and welfare will be created when people have jobs (in this study it is proportionate to labor absorption). This study analyzes the role of investment in creating social welfare for the community through economic growth and employment. Using a quantitative approach to test the theory with an explanatory design. Using secondary data that is a time series for the period 2006-2020. Data were analyzed using depth analysis techniques. The results of the analysis found that investment is considered to play a role in social welfare, economic growth, and employment. Next, that economic growth and employment have not been able to play a role in the social welfare of the community. Finally, that investment plays a role in social welfare both through economic growth and through employment.