Open AccessTransportation Infrastructure Relations on Economic Growth in Sumatra Island
Author(s) -
Zenia F Saraswati,
Nefertari Pramudhita,
Pradono Pradono,
Goldie Melinda Wijayanti,
Dabi Sefianiz
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/830/1/012099
Subject(s) - transportation infrastructure , urbanization , investment (military) , economic geography , stimulus (psychology) , transport infrastructure , economics , population growth , business , population , natural resource economics , economic growth , transport engineering , engineering , psychology , demography , sociology , politics , law , political science , psychotherapist
Transportation infrastructure is a stimulus in the economic growth of the region, no exception in Indonesia. But the interaction between transportation and economic development is a link to transportation’s ability to magnify the impact of urbanization. This raises the question of whether the existence of transportation can explain the economic growth that is occurring. On the other hand, whether the lack of transportation infrastructure is due to the economic capabilities that exist in the region. This research aims to pay attention to the relationship between transportation and economic growth in Sumatra Island. The growth of transportation infrastructure may explain economic growth in all districts of Sumatra Island but the magnitude of those relations in the urban areas are far greater than in nonurban areas. Using the Multispatial CCM method, it appears that investment in transportation infrastructure does not directly increase the GDP of transportation in the region. This research suggests that road investment can have an impact on GDP through increasing the region’s population which then provides an increase in GDP.