Infrastructure Improvement and Its Impact on Indonesian Economic Performance

Djoni Hartono (), Tony Irawan () and Ferry Irawan ()
Additional contact information
Djoni Hartono: Graduate Program in Economics, Faculty of Economics and Business, University of Indonesia
Ferry Irawan: Fiscal Policy Office - Ministry of Finance

No 201008, Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University

Abstract: Indonesian government shows big commitment on the improvement of infrastructure which is reflected in some regulations and policies. It is supported by many empirical evidences that show the importance of infrastructure improvement on economic performance. In this paper, we develop a CGE model to analyze the impact of infrastructure on Indonesian economy by introducing several types of infrastructure and also discuss the impact of infrastructure on the poverty level. The results suggest that improvement on any types of infrastructure is expected will increase economic growth, raise government revenue, raise factor’s income and reduce the poverty level. Improvement on public work of agriculture, land transportation and telecommunication are still preferable option relative to others. Interestingly, even though public work of agriculture usually is located in rural areas, but the model suggest that public work of agriculture improvement will result higher impact on urban household relative to rural household.

Keywords: CGE (search for similar items in EconPapers)
Pages: 17 pages
Date: 2010-12, Revised 2010-12
New Economics Papers: this item is included in nep-cmp, nep-pbe, nep-sea and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ceds.feb.unpad.ac.id/wopeds/201008.pdf First version, 2010 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://ceds.feb.unpad.ac.id/wopeds/201008.pdf [301 Moved Permanently]--> https://ceds.feb.unpad.ac.id/wopeds/201008.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:unp:wpaper:201008

Access Statistics for this paper

More papers in Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University Contact information at EDIRC.
Bibliographic data for series maintained by Arief Anshory Yusuf ().