Is the relationship between infrastructure and economic growth symmetric or asymmetric? evidence from Indonesia based on linear and non-linear ARDL

Aminudin Maruf and Abul Masih

MPRA Paper from University Library of Munich, Germany

Abstract: Although there are a number of studies on the relationship between infrastructure and economic growth, this study is the first attempt at investigating whether the relationship between infrastructure and economic growth is symmetric or asymmetric in Indonesia. Using the non-linear ARDL technique, this study employs quarterly data from 1990:Q1 – 2016:Q1. The paper finds a long-run asymmetric relationship between infrastructure and economic growth but symmetric relationship in the short-run. Moreover, this study also finds the causal direction of economic development in Indonesia from gross fixed capital formation to labor. The paper suggests the expansion of investment in the infrastructural industry to boost the growth of the Indonesian economy. The study also urges the policy makers to design robust infrastructure policies guiding the infrastructure and country’s economy in both the short-run and long-run period.

Keywords: Infrastructure; Economic Growth; Non-Linear ARDL; Indonesia (search for similar items in EconPapers)
JEL-codes: C58 O4 (search for similar items in EconPapers)
Date: 2019-06-22
New Economics Papers: this item is included in nep-gro, nep-sea and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/94663/1/MPRA_paper_94663.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:94663

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().