Title : Impact of Road Infrastructure, Education, Health and Foreign Direct Investment Toward Indonesia's Economic Growth: Level of 33
Authors :
1. Dr. Muryani SE, M.Si., MEMD.
2. Agna Amalia
Department : Economics
Journal Name : AFEBI Economic and Finance Review scimago
Type of Journal : Scopus Q3
Keywords : Economic Growth, Education, Foreign Direct Investment; Health;
Road Infrastructure

Economic growth is an indicator to determine the extent of development that has been carried out by the government. Indonesia's economic growth showed a decline from 2011 to 2015. Starting in 2011, Indonesia's economic growth was 6.17 percent and continued to decline to 4.79 percent in 2015. This economic decline is the basis for identifying factors that influence economic growth. Referring to the Solow economic growth model, which is a development of the Harrod-Domar model, it states that the factors that influence economic growth include capital stock, labor growth, and technological developments. Meanwhile, the Harrod-Domar model shows the relationship between investment and economic growth. Based on these two economic growth models, road infrastructure and foreign direct investment variables are used as investment factors in economic growth. Next, referring to the new (endogenous) growth theory which emphasizes the quality of human resources, education and labor variables are used as human capital in economic growth factors.
Infrastructure is a need for the country to carry out activities. Good infrastructure development will encourage economic growth. Infrastructure development in economic growth will have a direct and indirect impact. Infrastructure is considered as an important condition for the development of other sectors and as a means of connecting. Empowerment of resources in infrastructure development will increase economic and social multiplication. Road infrastructure in Indonesia continued to develop from 2010 to 2016 consisting of paved and unpaved roads. Paved roads in 2010 were 277,775 km, becoming 326,629 km in 2016. Fluctuations in non-asphalt roads, which initially expanded from 2010 to 2013 became narrower in 2014 to 2016. This is because some roads have been converted into asphalt roads.
Education is an investment in human capital. Higher education is seen as a source of innovation that will encourage increased productivity. The expansion of education is considered an attractive government policy because it has an impact on economic growth. The level of quality of education in a country will make the standard of living better and will improve the quality of the workforce. In developing countries, education drives economic growth. Education in Indonesia has a gap between villages and cities. The level of education using the Average Years of Schooling (RLS) shows that in rural areas it is only 7.52, while in cities education can reach 9.87 in 2016.
Health is considered a contribution to a country's economic growth. AHH itself is the number of years a person has lived. The benefit of AHH is to determine the level of welfare of the population in an area. With the increase in life expectancy at birth, it is interpreted that the level of health has improved. Health conditions in Indonesia have improved over the last six years as measured by life expectancy at birth. In 2011 the AHH was 70.01 and continued to increase although it was not as high as 70.9 in 2016. Health can have implications for the welfare of society equally.
One source of financing for Indonesia's development is Foreign Direct Investment (FDI). FDI is a very important source of economic growth, especially for developing countries. This allows countries to overcome domestic shortages in capital, technology and expertise, and has strong and long-lasting effects on growth, through both direct and spillover channels. The current condition of FDI in Indonesia has fluctuated from 2011-2016. In 2014 it decreased, then in 2015 it increased again, and in 2016 it decreased again.
This research analyzes the influence of road infrastructure, education, health and foreign direct investment on the economic growth of 33 provinces in Indonesia in 2010-2016. The regression estimation results show that simultaneously road infrastructure, education, health and PMA have an influence on the economic growth of 33 provinces in Indonesia, while partially (individually) PMA has no significant effect.

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http://journal.afebi.org/index.php/aefr/article/view/204