Title: The Impact of Infrastructure on Economic Growth in Indonesia
Author: Hanifatul Khurriah
Affiliations: Master of Economics Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The purpose of this study is to analyze and test the influence of infrastructure on economic growth. Infrastructure, also known as social overhead capital, is a public facility aggregated into five types, namely road transportation, telecommunications, electricity, water, and sanitation. The research period is 2011 to 2018 in 34 provinces in Indonesia. The theoretical approach used is the Neo-Classical economic growth theory with public capital infrastructure. The research method is quantitative with a dynamic panel analysis technique approach sys-GMM. The results of the study indicate that infrastructure simultaneously influences economic growth, this indicates that if the six exogenous variables work together, it will provide maximum results in economic growth, while partially each infrastructure also influences economic growth with a significance level of 1%, 5%, and 10%. The greatest influence is shown in the type of solid road infrastructure.
Keywords: economic growth, GDP per capita, infrastructure