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Seaport Status, Access, and Regional Development in Indonesia

Author

Listed:
  • Muhammad Halley Yudhistira

    (Institute for Economic and Social Research (LPEM), School of Economics and Business, University of Indonesia)

  • Yusuf Sofyandi

    (Institute for Economic and Social Research (LPEM), School of Economics and Business, University of Indonesia)

Abstract

As the biggest archipelago nation, Indonesia considers port infrastructure one of the most important infrastructures in bolstering the regional economic development. In this paper, we study the impacts of access to the existing port infrastructure on regional development, i.e. income per capita, productivity, and poverty at district level in Indonesia. While other similar studies use the size of seaport, we argue that the access may be much more important. Additionally, using access variable accommodates spillover effect of the seaport for landlocked district. We define access to the nearest port as the shortest distance of the respective district to the nearest port. Our estimation results show that proximity to the main ports provides positive effect on GDP per capita, labor productivity, poverty rate, and poverty rate. We also find the importance of ports may vary between Java and non-Java regions.Length: 14 pages

Suggested Citation

  • Muhammad Halley Yudhistira & Yusuf Sofyandi, 2016. "Seaport Status, Access, and Regional Development in Indonesia," Working Papers in Economics and Business 201601, Faculty of Economics and Business, University of Indonesia, revised May 2016.
    • Handle: RePEc:lpe:wpecbs:201601
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    References listed on IDEAS

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    Keywords

    seaport status; distance; regional economic development; seaport access; Indonesia;
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