HANDAYANI, Dita Resmi (2018) The Effect of Infrastructure Investments on Economic Growth in Central Java 2011-2015. Skripsi thesis, Universitas Jenderal Soedirman.

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Abstract

This research is about infrastructure and economic growth in Central Java Province. This research takes the title: "The Effect of Infrastructure Investment on Economic Growth in Central Java 2011-2015". Economic growth is one the indicators of the success of economic development, which is influenced by the accumulation of capital. A process of capital accumulation in the form of direct productive investments must be supplemented by supporting investments called economic and social infrastructure investments to support and integrate all economic activities running smoothly and productively. The purpose of this research is to analyze the effect of infrastructures such as road, water, education, and health to economic growth in Central Java. This research uses quantitative research method with descriptive approach. The object of this research is infrastructure in the terms of road, water, education, health, and GRDP value of 29 regencies and 6 cities in Central Java. The results of the research based on the panel data regression analysis using the random effect model show that: (a) Road, water, education and health infrastructures have simultaneously effect on economic growth of Central Java in 2011-2015, (b) infrastructure in the terms of road, water, education, and health partially have a positive and significant effect on economic growth of Central Java in 2011-2015. The implication of the above conclusion is that in an effort to increase economic growth, the government of Central Java Province should prioritize the development of economic and social infrastructure that has a big contribution to economic growth. Efforts to do are by an increase in road infrastructure development with attention to the quality of road service for its users, as well as the need to pay attention to distribution and availability of clean water for the society. The government needs to improve education facilities that are offset by improvements in the quality and quantity of teachers, especially in remote areas and also calling for more active improvements to health facilities by providing free and integrated healthcare for the society.

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