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Infrastructure, Economic Growth And Inequality In Indonesia Land Borders

Author

Listed:
  • Bayu Agung Prasetyo
  • Dominicus Savio Priyarsono
  • Sri Mulatsih

Abstract

The purpose of this study is to analyze the impacts of infrastructure on economic growth and inequality in Indonesia land borders. Using static panel data regression and panel two stage least square (2SLS) estimation methods, this study shows that social infrastructure can raise per capita income. The social infrastructures being discussed are number of high schools and number of health facilities. Telecommunication facility can also raise per capita income. In addition, income inequality is found to be positively influenced by income per capita growth and industry sector laborer. It also suggests that infrastructure has indirect relation with income inequality through per capita income.Keywords: Land borders, infrastructure, economic growth, inequalityJEL classification numbers: C23, C36, O15, O40, O53, I30, R11AbstrakTujuan penelitian ini adalah untuk menganalisis dampak infrastruktur terhadap pertumbuhan ekonomi dan ketimpangan di perbatasan darat Indonesia. Menggunakan metode estimasi regresi data panel statis dan panel two stage least square (2SLS), penelitian ini menunjukkan bahwa infrastruktur sosial dapat meningkatkan pendapatan per kapita. Infrastruktur sosial yang dibahas adalah jumlah sekolah tinggi dan jumlah fasilitas kesehatan. Fasilitas telekomunikasi juga dapat meningkatkan pendapatan per kapita. Selain itu, ketimpangan pendapatan ditemukan secara positif dipengaruhi oleh pertumbuhan pendapatan perkapita dan buruh sektor industri. Paper ini juga menunjukkan bahwa infrastruktur memiliki hubungan tidak langsung dengan ketimpangan pendapatan melalui pendapatan per kapita.Keywords: Perbatasan darat, infrastruktur, pertumbuhan ekonomi, ketimpanganJEL classification numbers: C23, C36, O15, O40, O53, I30, R11

Suggested Citation

  • Bayu Agung Prasetyo & Dominicus Savio Priyarsono & Sri Mulatsih, 2013. "Infrastructure, Economic Growth And Inequality In Indonesia Land Borders," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 5(2), pages 99-108.
    • Handle: RePEc:uii:journl:v:5:y:2013:i:2:p:99-108:id:3518
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    File URL: https://journal.uii.ac.id/JEP/article/view/3518/3111
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    Citations

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    Cited by:

    1. Sarastri Mumpuni Ruchba & Ferdy Suhada, 2015. "The impact of regional autonomy and monetary crisis on economic growth in Yogyakarta," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(1), pages 60-68, April.
    2. Muhammad Hidayat & Ranti Darwin & M. Fikry Hadi, 2020. "Does Energy Infrastructure Reduce Inequality Inter-regional in Riau Province, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 160-164.
    3. Amien Makmuri, 2017. "Infrastructure and inequality: An empirical evidence from Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 9(1), pages 29-39, April.
    4. Ernawati Ernawati & Tajuddin Tajuddin & Syamsir Nur, 2021. "Does Government Expenditure Affect Regional Inclusive Growth? An Experience of Implementing Village Fund Policy in Indonesia," Economies, MDPI, vol. 9(4), pages 1-12, November.

    More about this item

    Keywords

    Land borders; infrastructure; economic growth; inequality;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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