ANALISIS PENYALURAN AIR, KAPASITAS LISTRIK LOKAL, INFRASTRUKTUR JALAN, DAN PENANAMAN MODAL ASING TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA TAHUN 2013-2017
Abstract
Infrastructure and Foreign Direct Investment are one of the variables that supports economic growth and also the priorities for economic development in Joko Widodo’s era of presidency. This study aims to determine the effect of water distribution, local electricity capacity, road infrastructure and Foreign Direct Investment (FDI) on economic growth. The data used in this study is panel data from 2013 to 2017 in 33 provinces in Indonesia. By using fixed effects analysis, the results of this study indicates that the water distribution, local electricity capacity and Foreign Direct Invesment variables have positive and significant effect on economic growth, while the road infrastructure variable has an insignificant effect on economic growth. The policy recommendation of this research is that the government should allocates more budget on projects by adding installed electricity capacity, increasing the distribution of clean water, and stimulating foreign investment, therefore it has positive effect on economic growth.