There is inequality between the economic growth of provinces in Java and outside of Java. The total area of Java is only 6,77% from total area of Indonesia but the Growth Domestic Product (GDP) based on constant price in 2014, Java contributed 57,8% of the GDP total Indonesia. One cause that made this disparity is the development of infrastructure in outside Java is still weak. The development of infrastructure is a basic element for increasing total output production that later will increase the economic growth. However, there are so many problems that occur in developing the infrastructure in outside of Java. This study aimed to analyze the condition of infrastructure provinces outside Java in 2010-2014. The data used is the secondary data for 27 provinces outside of Java 2010-2014 from BPS. The analytical method used is panel data regression with fixed effect model and Seemingly Unrelated Regression (SUR) Model. Based on the results, the infrastructure that affects economic productivity significantly and positively is road infrastructure, health, and budget. Infrastructure that affects economic productivity significantly and negatively is the educational infrastructure. Water and electricity infrastructure did not significantly affect economic productivity.
Keywords: Infrastructure, Economic productivity, Panel Data Regression, Fixed Effect Model
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Subject | government expenditure on health, fiscal capacity, IDI, panel data regression |
Type | Data Analysis |
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