Analyzing the socially sustainable impacts of private investments in the mining sector in rural areas

Abstract

This study examines the effect of private investment in the mining sector on social sustainability across nine ASEAN countries from 2005 to 2021 using the CS-ARDL panel data approach. The results indicate a negative relationship between private mining investment and social sustainability, with reductions of 0.15% in the short term and 0.59% in the long term, due to environmental degradation, income inequality, and economic volatility. A 1% increase in rural GDP also leads to declines in social sustainability by 0.03% and 0.17% in the short and long term, respectively, underscoring the need for eco-friendly economic activities. Additionally, inflation reduces social sustainability, while rural internet access significantly improves it. To encourage sustainable investment, policies should focus on green finance, sustainable literacy, risk mitigation, and rural economic growth aligned with sustainable development principles.