NIYARA TRIA INDAH KUSUMAWATI, 041211133075 and Atik Purmiyati, - (2020) The Influences Of Economic And Social Infrastructure On The Economic Growth In Eastern Indonesia. International Journal of Management (IJM), 11 (6). pp. 1957-1962. ISSN 0976-6502, eISSN: 0976-6510

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Abstract

The establishment of the public services between western and eastern Indonesia, especially in their public infrastructure and facilities, is still obviously uneven. Various public services such as health, education, clean water, and roads in eastern Indonesia are still far behind. The success level of national development can be measured through economic growth by comparing the aspects of local economic improvement to the quality and quantity of the infrastructure between the two regions. This study aims to analyze the influences of economic and social infrastructure on economic growth in Eastern Indonesia simultaneously and partially. This study was quantitative research utilizing panel data regression with Random Effect Model (REM) method. This study employed 96 observations consisting of annual time series data starting from 2010 to 2015 and cross-section data of 16 provinces in the Eastern Parts of Indonesia (KTI). The dependent variable was the economic growth measured by the Gross Regional Domestic Product or GRDP. Meanwhile, the independent variables were the road infrastructure, water infrastructure, electricity infrastructure, health infrastructure, education infrastructure, and labor. The coefficient values of the constant variables from the infrastructure of roads, water, electricity, health, education, and labor respectively were 3,8951-; 0,59706; -0,1395; 0,78033; 0,06913; and -0,8351. Based on the F testing result, the F-statistic probability value was 0.000, less than the significance level (α = 0.05). All independent variables simultaneously affected the economic growth in Eastern Indonesia from 2010 up to 2015. The variables of road and clean water infrastructures partially had a positive and insignificant effect, whereas health and education infrastructures and labor had a somewhat positive and significant impact.

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