PENGARUH INFRASTRUKTUR TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI DAERAH ISTIMEWA YOGYAKARTA

Abstract

All variables consist of capital and and labor according to the Cobb- Douglas production function. Infrastructure is important because it is one of the capital forms and used to increase labor productivity as support. Infrastructure’s supply in Special Region of Yogyakarta Province is less considered because there is negative growth. This study aims to analyze the effect of the infrastructures to the economic growth of Special Region of Yogyakarta Province. The data that are used in this study are the Gross Regional Domestic Product (GRDP) on the basis of a constant price of 2010, number of electricity’s customers, number of regional water supply establishment’s customers, road lengths, number of classes in highschools, number of bedrooms in hospitals and public health centers, and the development expenditures, from 2006 to 2015. The data was analyzed by means of the panel data analysis using the fixed effect regression model. The result of the study indicates that number of electricity’s customers, number of classes in highschools and the development expenditures positively have a significant effect on the economic growth. Regional water supply estabilishment’s customers, road lengths and number of bedrooms in hospitals and public health centers positively affect the economic growth but not significant. The result of this study also shows that number of electricity’s customers has the biggest impact on the economic growth of Special Region of Yogyakarta Province.