Extant literatures have suggested that the quality of infrastructure determines the successfulness of development occurred in a nation. It includes providing good transportation infrastructures e.g. roads, river, sea, air and railways that not only can facilitate people’ movement abut also improve outcomes of business cycles connected through various transportation system. infrastructure, especially transportation infrastructure, which includes roads, rivers, sea, air and railways. In the case of the Indonesian economy with the classic issue of poor government governance, the weak role of transportation infrastructure in the national development tends to be in line with the low service quality and limited scope of services on the transportation-related sectors symbolizing ineffectiveness of existing transportation infrastructure to boost the economic growth of the nation. This paper aims to analyze the relationship among government quality, investment in transportation infrastructure and economic growth in Indonesia over 2000 – 2017 period. The results of data analysis indicates that road length has a positive relationship with economic growth in the first 5 years and shows a negative relationship in the following year. The contribution of loading and unloading of domestic shipping goods on the economic growth only occurred in 2010. More interestingly, the quality of government reflected from unqualified opinion for the financial statements of Ministry of Transportation of Republic of Indonesia shows no impact to the infrastructure investment especially from foreign direct investment.
Aschauer, D. A. (1989). Is Public Expenditure Productive?. Journal of Monetary Economics. 23, 177–200.
Badan Pemeriksaan Keuangan RI. (2017). Ikhtisar HasilPemeriksaan Semester. https://www.bpk.go.id
Badan Pusat Statistik. https://www.bps.go.id
Bappenas, K. N. P. P. N. (2012). Kajian Evaluasi Pembangunan Bidang Transportasi di Indonesia.
Barro, R. J. & Martin, X. S. I. (1995). Economic Growth. New York, Mc GrawHill Inc.
Canning, D. (1999). Infrastructure’s Contribution to Aggregate Output. World Bank Policy Research Working Paper No. 2246.
Competitiveness Global Report. https://www.weforum.org
Crain, M., & Oakley, L. K. (1995). The Politics of Infrastructure. Journal of Law and Economics. 38, 1–17.
Crescenzi, R., Di Cataldo, M., & Rodríguez-Pose, A. (2016). Government Quality and The Economic Returns of Transport Infrastructure Investment in European Regions. Journal of Regional Science, 56(4), 555–582. https://doi.org/10.1111/jors.12264
Dixon, P.B., Parmenter, B. R., Powell, A. A., & Wilcoxen, P. J. (1992). Notes and Problems in Applied General Equilibrium Economics. North-Holland, Amsterdam.
Haryanto, I. (2012). Dampak Investasi Infrastruktur Transportasi terhadap Penyerapan Tenaga Kerja Sektor Ekonomi dan Distribusi Pendapatan Masyarakat di Provinsi Jawa Barat. Disertasi. Program Pascasarjana Institut Pertanian Bogor, Bogor.
Henisz, W. J. (2002). The Institutional Environment for Infrastructure Investment. Industrial and Corporate Change. 11, 355–389.
Maryaningsih, N., Hermansyah, O., & Savitri, M. (2014). Pengaruh Infrastruktur terhadap Pertumbuhan EkonomI Indonesia. Buletin Ekonomi Moneter dan Perbankan, 17(1), 62–98. https://doi.org/10.21098/bemp.v17i1.44
Ministry of National Development Planning / National Development Planning Agency. (2015). National Medium Term Development Plan 2015-2019, 313. https://doi.org/10.1017/CBO9781107415324.004
Mohmand, Y. T., Wang, A., & Saeed, A. (2017). The Impact of Transportation Infrastructure on Economic Growth: Empirical Evidence from Pakistan. Transportation Letters, 9(2), 63–69. https://doi.org/10.1080/19427867.2016.1165463
Ridwan, A. S. (2000). Tantangan dan Pemecahan Masalah Sektor Transportasi di Indonesia?: Sumbangan Pemikiran ITB 1, 32(2), 89–123.
Sahoo, P., Dash, R. K., & Nataraj, G. (2012). China’s Growth Story: The Role of Physical and Social Infrastructure. Journal of Economic Development, 37(1), 53–75.
Saragih, F. R., Ramadhana, F. H., Irawan, F., Hartono, D., & Irawan, T. (2010). Pengaruh Pelaksanaan Proyek Infrastruktur terhadap Perkembangan Variabel Makro. Pusat Pengolahan Resiko Fiskal, Departemen Keuangan RI. Jakarta.
Short, J., & Knopp, A. (2005). Transport Infrastructure: Investment and Planning, Policy and Research Aspects, Transport Policy. 124, 360–367.
Sibrani, M. H. M. (2002). Kontribusi Infrastruktur terhadap Pertumbuhan Ekonomi Indonesia. Tesis Program Pascasarjana Universitas Indonesia, Jakarta.
Yu, N., De Jong, M., Storm, S., & Mi, J. (2012). The Growth Impact of Transport Infrastructure Investment: A Regional Analysis for China (1978-2008). Policy and Society, 31(1), 25–38. https://doi.org/10.1016/j.polsoc.2012.01.004
Yanuar, R. (2006). Kaitan Pembangunan Infrastruktur dan Pertumbuhan Output serta Dampaknya terhadap Kesenjangan di Indonesia. Tesis. Institut Pertanian Bogor. Bogor.
Farza, T. C. N., & Zainal, A. (2018). How the Government Quality can Help Boosting Infrastructure Investment and Economic Growth? A Closer Look at Indonesia’s Practice. International Journal of Academic Research in Business and Social Sciences, 8(7).501-511
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
