Economic and Finance in Indonesia
Vol. 66, No. 2

The Impact of Disparity in Infrastructure Development on Aceh's Economic Performance: An Inter-Provincial Analysis

Fahmi, Mutiara (Unknown)



Article Info

Publish Date
31 Dec 2020

Abstract

This study provides empirical findings on regional disparity in infrastructural facilities in 23 districts/municipalities of Aceh Province and the impact of the disparity on the economic performance of Aceh Province, specifically on those of economic growth, poverty, and unemployment. The unit of analysis is the district level and the Infrastructure Development Index (IDI) is used as the variable computed by using the multivariate method. Regional disparity is measured by the Coefficient of Variation and the impact of IDI on the provinces economy is analyzed using the econometric model. The analysis shows that infrastructure development disparity exists and that IDI generally affects the economic performance in Aceh Province. Specifically, the results reveal that electricity provision, the number of hotels, and the length of road positively correlate with economic performance. However, the number of Base Transceiver Stations, the number of markets, and the number of banks do not necessarily lead to higher economic performance. The policy implications of the findings are discussed.

Copyrights © 2020






Journal Info

Abbrev

publication:efi

Publisher

Subject

Economics, Econometrics & Finance Education

Description

Aims & Scope EFI mainly covers original idea related to the Economics and Finance in Indonesia. Published articles can be either theoretical, empirical, or in between of those two polar variants. The journal covers specific areas, including but not limited to: Agricultural Economics Capital Market ...