The Effect of Infrastructure Development on Economic Growth in Indonesia

Abstract

Infrastructure development in Indonesia has a significant positive impact on economic growth and people's welfare. This study aims to analyze the impact of infrastructure development on economic growth in 34 Indonesian provinces in the 2020-2023 period. The dependent variable is economic growth, while independent variables are the physicalspecial allocation fund, road length infrastructure, domestic investment, and household consumption that has telecommunication expenditure. This research method uses fixed effect panel data regression analysis using the Eviews 12 application. The results of this study indicate that the independent variables affect the dependent variable simultaneously. Physical special allocation funds, household consumption that have telecommunications expenditures, and domestic have a significant positive effect on economic growth. In contrast, road-length infrastructure have no effect on economic growth.