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The Impact of Public Capital Investments on the Revenue Growth of Medium Enterprise in Indonesia

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  • Tirtosuharto, Darius

Abstract

Public capital investment represents the role of state and local governments in supporting greater capacity of private enterprises to gain success in a market economy measured by revenue growth. Medium enterprises are considered as the catalysts for economic growth and competitiveness particularly in developing countries due to efficiency and flexibility in an adverse economic environment. Using aggregate data of 30 states (provinces) in Indonesia from 1997-2002, the impact of public capital investment on the revenue growth of medium enterprise is examined. The paper finds that only medium enterprises in the industrial and trading sector benefited from public capital investments and the most optimum capital investment is in transport infrastructure.

Suggested Citation

  • Tirtosuharto, Darius, 2012. "The Impact of Public Capital Investments on the Revenue Growth of Medium Enterprise in Indonesia," MPRA Paper 44063, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:44063
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    References listed on IDEAS

    as
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    3. Blane D. Lewis, 2005. "Indonesian Local Government Spending, Taxing and Saving: An Explanation of Pre‐ and Post‐decentralization Fiscal Outcomes," Asian Economic Journal, East Asian Economic Association, vol. 19(3), pages 291-317, September.
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    More about this item

    Keywords

    business enterprises; economic development; infrastructure; public capital investments; Indonesia;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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