Title: The Influence 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 aim of this research is to analyze and test the influence of infrastructure on economic growth. Infrastructure, also known as social overhead capital, is a public facility which is aggregated into five types, namely road transportation, telecommunications, electrical energy, water and sanitation. Research period 2011 to 2018 in 34 provinces in Indonesia. The theoretical approach used is the Neo-Classical economic growth theory with public infrastructure capital. The research method is quantitative with a sys-GMM dynamic panel analysis technique approach. The research results show that infrastructure simultaneously influences economic growth, this indicates that if the six exogenous variables work together they 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 on the type of solid road infrastructure.
Keywords: economic growth, GDP per capita, infrastructure
