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Septriani Septriani
Department of Economic Development, Bengkulu University
Economics, Econometrics & Finance Social Sciences

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Infrastructure Development and Economic Growth in Java Island:: A Random Effect Panel Data Analysis (2016–2021) Septriani Septriani; I Gusti Ngurah Oka Widjaya; Risky Angga Pramuja
Econetica: Jurnal Sosial, Ekonomi, dan Bisnis Vol. 6 No. 2 (2024): November 2024
Publisher : Program Studi Ekonomi Islam Fakultas Ekonomi Universitas Nahdlatul UlamaNusa Tenggara Barat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69503/econetica.v6i2.396

Abstract

This study aims to examine the impact of infrastructure development and population growth on regional economic growth across six provinces in Java Island from 2016 to 2021. Infrastructure serves as a critical determinant of productivity enhancement and interregional connectivity, while demographic dynamics influence regional production and consumption capacity. The study employs secondary data obtained from Statistics Indonesia (BPS), the Ministry of Finance, and the Ministry of Public Works and Housing (PUPR). A panel data regression approach is applied, comparing the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). Model selection through Chow, Hausman, and Lagrange Multiplier tests identifies the Random Effect Model as the most appropriate specification. The results show that road and electricity infrastructures have a positive and significant effect on Gross Regional Domestic Product (GRDP), whereas population growth has no significant influence on regional economic performance. The coefficient of determination (R²) of 0.8414 indicates that the independent variables collectively explain 84.14 percent of the variation in GRDP. These findings confirm that infrastructure development remains a vital engine of regional economic growth, while population growth must be supported by improvements in human capital and labor productivity to become an effective driver of economic progress. The study contributes to regional development literature and provides policy implications for sustainable and equitable growth planning in Indonesia.
Analysis Of The Effect Of Inftrastructure And Polulation On The Economy Of Java Island Septriani Septriani
Econetica: Jurnal Sosial, Ekonomi, dan Bisnis Vol. 6 No. 1 (2024): Mei 2024
Publisher : Program Studi Ekonomi Islam Fakultas Ekonomi Universitas Nahdlatul UlamaNusa Tenggara Barat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69503/econetica.v6i1.397

Abstract

This study aims to analyze the influence of road infrastructure, electricity infrastructure and population on provincial GRDP in Java. The type of data used in this study is secondary data from the Ministry of Finance and the Statistics Center Agency during the 2016-2021 time period. The method used in this study is panel data regression. Based on the regression result, the best model was obtained, namely the Random Effect Model. Furthermore, the results of this study show that partially the variables of road infrastructure, as well as electricity infrastructure have a positive and significant effect on the Provincial GRDP in Java Island at α=5%, while simultaneously the variables of roads infrastructure, electricity infrastructure, and population have a positive and significant effect on GRDP at α=5%. As for the results of the coefficient of determination (R2) test, the Adjusted R-Square value is 0.8414. This result shows that the variables of road infrastructure, electricity infrastructure and population can explain GDP by 84.14 percent while 15.86 percent is explained by other variables outside the model
Infrastructure Development and Population Dynamics as Determinants of Regional Economic Growth: Evidence from Java Island, Indonesia Septriani Septriani; Muhammad Azizurrohman
Econetica: Jurnal Sosial, Ekonomi, dan Bisnis Vol. 5 No. 1 (2023): Mei 2023
Publisher : Program Studi Ekonomi Islam Fakultas Ekonomi Universitas Nahdlatul UlamaNusa Tenggara Barat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69503/econetica.v5i1.445

Abstract

This study investigates the impact of infrastructure development and population growth onregional economic performance across the provinces of Java Island, Indonesia. Using panel datacovering the period from 2016 to 2021 obtained from the Ministry of Finance and the CentralBureau of Statistics, the study applies a Random Effect Model to assess the contribution of roadinfrastructure, electricity infrastructure, and population to provincial Gross Regional DomesticProduct (GRDP). The empirical results reveal that road and electricity infrastructure exertpositive and statistically significant effects on GRDP, indicating that improvements intransportation networks and energy supply directly enhance regional productivity and economicactivity. In contrast, population growth shows no significant effect, suggesting that demographicexpansion alone does not guarantee economic advancement without correspondingemployment opportunities and infrastructure quality. The model explains 84.14 percent of thevariation in GRDP, confirming the strong explanatory power of infrastructure variables. Thesefindings highlight the importance of sustained investment in physical infrastructure to promoteinclusive and balanced economic growth across regions
Co-Authors I Gusti Ngurah Oka Widjaya Muhammad Azizurrohman Risky Angga Pramuja