Jurnal Ekonomi Pembangunan
Vol. 23 No. 02 (2025): Jurnal Ekonomi Pembangunan

The Effect of Road Infrastructure, Foreign Investment, and Tax Revenue on Indonesia: ARDL Model Approach

Fitri Azzahro (Economics, Faculty of Economics and Business, State University of Surabaya, Indonesia)
Wenny Restikasari (Economics, Faculty of Economics and Business, State University of Surabaya, Indonesia)



Article Info

Publish Date
06 Dec 2025

Abstract

This study aims to analyze the short- and long-term effects of road infrastructure, foreign investment, and tax revenue on Indonesia's economic growth, covering the period from 2014Q1 to 2022Q4. The study uses the Autoregressive Distributed Lag (ARDL) model to show that road infrastructure has negative short- and long-term effects. While foreign investment has a positive, insignificant impact in the long term, it can have a positive, significant impact in the short term. Tax revenue has negligible, positive implications only in the long term, but a positive, significant impact in the short term. Based on these findings, the government should prioritize developing and maintaining infrastructure that connects production areas with market centers, industrial areas, and ports, with a focus on integrating different modes of transport. Additionally, offering suitable tax incentives could encourage partnerships between foreign investors and local industries, thereby boosting innovation, production capacity, and technology transfer to promote sustainable economic growth.

Copyrights © 2025






Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal ekonomi pembangunan published by Pusat Pengkajian Ekonomi dan Kebijakan Publik (PPEKP), Faculty of Economics and Business, University of Muhammadiyah Malang. This journal is used as a source of information about scientific works in the field of development economics for every academician, ...