PERTUMBUHAN EKONOMI REGIONAL DI INDONESIA: PERAN INFRASTRUKTUR, MODAL MANUSIA DAN KETERBUKAAN PERDAGANGAN

Abstract

This study discusses the analysis of the impact of infrastructure development,
human capital and trade openness on regional economic growth in Indonesia using the panel
data method. The model was built based on the Solow growth model using road infrastructure,
electricity infrastructure, health infrastructure, life expectancy, mean years of schooling and trade
openness in 34 provinces in Indonesia. Estimation results obtained from this study using the fixed
effects model indicate that regional economic growth in Indonesia is influenced by electricity
infrastructure, health infrastructure, mean years of schooling, life expectancy, and trade openness.
Whereas road infrastructure has a negative and not significant effect on regional economic growth
in Indonesia. Life expectancy has the biggest impact on regional economic growth followed by
mean years of schooling, health infrastructure, electricity infrastructure, and trade openness.