Pengaruh Infrastruktur Pada Pertumbuhan Ekonomi Wilayah di Indonesia

Rindang Bangun Prasetyo, Muhammad Firdaus

Abstract


Infrastructure development is believed as to be an economic development accelerator. This study aims to analyze the impact of infrastructure on regional economic growth in Indonesia using panel data methods. The model is built based on the Cobb-Douglas production function. By using the infrastructure data of 26 provinces using the fixed effects method of panel data, the results obtained show that economic growth is influenced by infrastructure, such as the provision of electricity, paved roads and clean water. In addition, production activities in Indonesia are still categorized as laborintensive, this is shown by the fact that the elasticity of labor is greater than the elasticity of capital. Electricity has the greatest impact on economic growth, followed by paved road and clean water.