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All Journal International Journal on Social Science, Economics and Art
Ibnu Aziz, Muhammad
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Religion Economics, Econometrics & Finance Education Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice

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The influence of infrastructure on economic growth in indonesia 2016-2022 Ibnu Aziz, Muhammad; Nur Hidayah, Nur Hidayah
International Journal on Social Science, Economics and Art Vol. 15 No. 1 (2025): May: Social Science, Economics
Publisher : Institute of Computer Science (IOCS)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/ijosea.v15i1.752

Abstract

This study investigates the influence of infrastructure on economic growth in Indonesia from 2016 to 2022, offering a novel contribution by simultaneously analyzing multiple infrastructure dimensions road length, electricity distribution, clean water availability, and the number of educational institutions across all 34 provinces over seven years. The research addresses the ongoing issue of regional economic disparities despite sustained infrastructure investments. Using a quantitative approach, the study employs secondary data from the Central Bureau of Statistics (BPS) and applies panel data regression with the Fixed Effect Model (FEM) as the most suitable estimation method based on model selection criteria. The variables analyzed include road length (Km), electricity distributed (GWh), clean water distribution (L/sec), and the number of senior high schools (units), with Gross Regional Domestic Product (GRDP) at current market prices as the dependent variable. The empirical results indicate that electricity distribution, clean water access, and the number of senior high schools have a significant positive effect on GRDP, highlighting their role in enhancing productivity and economic performance. Conversely, road length exhibits a significant negative effect, suggesting a tested reverse hypothesis: that road expansion, in some regions, may not translate into economic gains due to inefficiencies in allocation or lack of alignment with local economic needs. These findings underscore the importance of strategic, need-based infrastructure planning to foster equitable and sustainable economic growth in Indonesia
Co-Authors Nur Hidayah, Nur Hidayah