Transportation Infrastructure and Economic Growth in Central of Java: Evidence from Panel Data

Novali Panji Nugroho, Inda Fresti Puspitasari

Abstract


Infrastructure is an important pillar to increase economic growth. Transportation infrastructure is the one part of the infrastructure that can be an indicator of economic growth. This research aims to determine the effect of transportation infrastructure on economic growth in Central Java province from 2017 to 2020. The variables used in this research is the GDP per capita, length of the road, number of vehicles, and government spending. This research used panel data through the Eviews 9. The best model in this research is the FEM after two tests, namely Chow and Hausman test. The results of testing through analysis tools show that the length of the road with the empirical probability value of 0.1411 (> 0.05) has no significant effect on economic growth, while the number of vehicles and government spending has a significant effect on economic growth with each probability of 0.0000 (< 0.05).

Keywords


Transportation infrastructure, Economic Growth, Panel Data, Central of Java

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.153

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