The Impact of Urban Green Spaces on Labor Productivity: Dynamic Spatial Panel Evidence from Indonesian Cities

Urban green spaces are increasingly recognized as key elements of sustainable urban development; however, their economic implications, particularly for labor productivity, remain underexplored in developing countries. This study examines the impact of urban green spaces on labor productivity across 92 Indonesian cities over the period 2014–2024, while accounting for spatial dependence and dynamic effects. Urban green space is measured using the Normalized Difference Vegetation Index (NDVI), and labor productivity is defined as the ratio of regional economic output to employment. The analysis incorporates control variables including life expectancy, environmental quality (AOD), average years of schooling, and GDP per capita. To address spatial and temporal dynamics, this study employs a Spatial Dynamic Panel Data (SDPD) framework. The results show that urban green spaces have a positive and significant effect on labor productivity. In addition, spatial spillover effects are evident, indicating that productivity in one city is influenced by conditions in neighboring areas. Socio-economic factors, particularly health, education, and economic development, also play a significant role. These findings highlight the economic relevance of urban green infrastructure and underscore the importance of integrating environmental considerations into urban policy to enhance productivity in developing country contexts.

Authors

Institutions

Publication Details

Journal
Sustainability
Published
2026-04-14
DOI
https://doi.org/10.3390/su18083882
Primary Topic
Urban Green Space and Health
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

The Impact of Urban Green Spaces on Labor Productivity: Dynamic Spatial Panel Evidence from Indonesian Cities

Abd. Rahman Razak, Adji Achmad Rinaldo Fernandes, Sabir, Aditya Idris
Sustainability
Urban Green Space and Health
article

The Impact of Urban Green Spaces on Labor Productivity: Dynamic Spatial Panel Evidence from Indonesian Cities

Abd. Rahman Razak, Adji Achmad Rinaldo Fernandes, Sabir, Aditya Idris
article en

Abstract

Urban green spaces are increasingly recognized as key elements of sustainable urban development; however, their economic implications, particularly for labor productivity, remain underexplored in developing countries. This study examines the impact of urban green spaces on labor productivity across 92 Indonesian cities over the period 2014–2024, while accounting for spatial dependence and dynamic effects. Urban green space is measured using the Normalized Difference Vegetation Index (NDVI), and labor productivity is defined as the ratio of regional economic output to employment. The analysis incorporates control variables including life expectancy, environmental quality (AOD), average years of schooling, and GDP per capita. To address spatial and temporal dynamics, this study employs a Spatial Dynamic Panel Data (SDPD) framework. The results show that urban green spaces have a positive and significant effect on labor productivity. In addition, spatial spillover effects are evident, indicating that productivity in one city is influenced by conditions in neighboring areas. Socio-economic factors, particularly health, education, and economic development, also play a significant role. These findings highlight the economic relevance of urban green infrastructure and underscore the importance of integrating environmental considerations into urban policy to enhance productivity in developing country contexts.

SustainabilityVol. 18(8)
University of Brawijaya (ID), Hasanuddin University (ID)
Openalex Percentile: Top 21%
Urban Green Space and Health
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.