Infrastructure, geography, and regional economic development in Indonesia : a regional analysis

Purwanto (2006). Infrastructure, geography, and regional economic development in Indonesia : a regional analysis Master's Thesis, School of Economics, The University of Queensland.

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Author Purwanto
Thesis Title Infrastructure, geography, and regional economic development in Indonesia : a regional analysis
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2006
Thesis type Master's Thesis
Total pages 83
Language eng
Subjects 1402 Applied Economics
Formatted abstract
The topic of this research project is Infrastructure, Geography, and Regional Economic Development in Indonesia. The analysis is conducted at regional level. The broad aim of the study is to examine the role of economic geography and related factors such as human development and infrastructure development in explaining the regional economic development in Indonesia. It specifically aims at examining the impacts and potential implications of increasing regional economic growth in Indonesia.

To achieve the objective of this study, data were obtained from various sources and statistical databases for 2004. Regression analysis has been used to estimate the model based upon data from the 30 provinces of Indonesia.

The result shows that there is determinant factor of regional economic growth in Indonesia; namely population density. This study indicates that population density has a significant and positive relationship with economic growth. High population density is often associated with a high level of infrastructure services in the region. Population density shows the size of potential market for the needs of consumption in goods and services. Firms in heavily populated provinces have greater access to conSUI11er and this could be behind the relationship between economic growth and population density.

This study suggests that the government should improve the distribution of infrastructure provision across the country and minimize the regional disparities in infrastructure services, especially in rural and remote areas. The significant improvement in infrastructure provision will attract more economic activities that will increase the job opportunity in each province. This means that the regional development should be maintained properly to reach the aims and objectives in Indonesia's economic growth. Thus, the central government should build a good cooperation and relationship with the private sector, development agencies, local governments and communities.

Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
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Created: Mon, 04 Oct 2010, 16:20:46 EST by Ning Jing on behalf of Social Sciences and Humanities Library Service