Regional Disparity of Infrastructural Development and Aceh Province Economy: An Inter-Provincial Analysis
Date
2021-01Author
Fahmi, Mutiara
Sahara, Sahara
Purnamadewi, Yeti Lis
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Show full item recordAbstract
Inequality is not a new problem in Indonesia, as it is in Aceh
Province. The availability of different infrastructure in each city and district
is one physical example of the imbalance itself because the availability of
infrastructure is also a determining factor for the economic growth of each
region. In fact, this province receives a special grant from the central
government where the funds are specifically for infrastructure development
and economic growth. However, the real condition of the province's poverty
rate and the highest unemployment rate in the island of Sumatra negates all
the privileged benefits of the aid funds that have been allocated for years.
Therefore, these infrastructure facilities are very important when
considering the conditions of economic growth to be achieved for each
region with the ultimate goal of more equitable growth. On the other hand,
infrastructure also has an indirect impact on GDP / capita, poverty level and
also the total unemployment rate in Aceh Province. In fact, several cities
and districts have very high unemployment rates and very low economic
growth rates, indicated by the low GDP growth rates of each city and
district. On the other hand, the availability of facilities and infrastructure is
also a major factor in hampering the progress of economic activity in each
region.
Hence, this study provides empirical findings regarding disparities
between regions in infrastructure in 23 cities / districts in Aceh Province and
the impact of these regional disparities on the economy of Aceh Province,
particularly economic growth, poverty and unemployment. The unit of
analysis is the district level where the Infrastructure Development Index
(IDI) is analyzed using the multivariate method to measure the level of
availability of facilities. The IDI calculation is based on the nine
infrastructure or facilities available in Aceh Province. Furthermore, the level
of disparity in infrastructure between regions is analyzed using the
coefficient of variation. The effect of IDI on the provincial economy was
analyzed using an econometric model.
The results of the analysis based on the IDI show that in the 2015-
2019 period, in general the level of infrastructure availability in each district
/ city was relatively high / low with the average IDI value tending to
increase from 0.591 in 2015 to 0.612 and in 2019 the highest IDI score. is
0.807 (Sabang City) and the lowest value is 0.152 (Langsa City). However,
based on the analysis of the coefficient of variation in the disparity in the
level of infrastructure availability between relatively small areas, it is less
than 0.3 and tends to decline.
Based on the results of the regression analysis, it shows that the
level of infrastructure availability, IDI in general affects the economic
conditions of Aceh Province and specifically there are different types of
infrastructure that affect each economic condition (economic growth,
unemployment and poverty). Of the nine infrastructure variables, only three
variables can reduce poverty, namely electricity, roads and hotels
infrastructure; only one variable can reduce unemployment, namely road
infrastructure and there are three variables that increase economic growth,
namely rural electricity infrastructure, hotels and banks.
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- MT - Economic and Management [2965]