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Analysis on Sources of Inefficiency in the Construction Sector: High Cost of Infrastructure Development in Indonesia

In: Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics

Author

Listed:
  • Anang Muftiadi
  • Rivani Rivani
  • Dian Fordian

Abstract

This study aims to identify the trend and sources of inefficiency of the construction sector in Indonesia causes expensive infrastructure development. The basic model was built on the basis of the intermediate input coefficients of Input–Output Table. The sources of inefficiency were metal goods industry, mining and other quarries, the non-metal goods and minerals industry, the cement industry, petroleum refining, building and business services companies, wood, land transportation, manufacture of rubber and plastic goods, financial institutions and machinery, electrical equipment and equipment industries. Indonesia needs a strong upstream industry on raw and supporting materials of iron-steel, wood and cement.

Suggested Citation

  • Anang Muftiadi & Rivani Rivani & Dian Fordian, 2021. "Analysis on Sources of Inefficiency in the Construction Sector: High Cost of Infrastructure Development in Indonesia," International Symposia in Economic Theory and Econometrics, in: Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics, volume 28, pages 53-67, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:isetez:s1571-038620210000028004
    DOI: 10.1108/S1571-038620210000028004
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    More about this item

    Keywords

    Construction sector; determinant sector; inefficiency; input coefficient; input–output table; upstream industry; O41;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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