Research Paper
Year: 2021 | Month: April | Volume: 8 | Issue: 4 | Pages: 196-210
DOI: https://doi.org/10.52403/ijrr.20210427
Analysis of the Influence of Infrastructure on Economic Growth in North Sumatra Province
Syamsidar Sinaga1, Irsad2, Rahmanta3
1Postgraduate Students, Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
2,3Postgraduate Lecturer, Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
Corresponding Author: Syamsidar Sinaga
ABSTRACT
The objective of the research was to analyze the influence of road infrastructure, health infrastructure, and government spending in infrastructure on economic growth in North Sumatra Province. In the model equation, economic growth is dependent variable while road infrastructure, health infrastructure and government spending in infrastructure are independent variable. The scope of this research is the district and city in North Sumatra Province, exactly 32 districts/cities from 2015-2019. The analyzing model is the Fixed Effect Model, by using E-views 10 software. The result of the research showed that road infrastructure, health infrastructure, and government spending in infrastructure simultaneously had significant influence on economic growth. Partially road infrastructure had negative and not significant influence on economic growth, health infrastructure had positive and significant influence on economic growth and government spending in infrastructure had positive and not significant influence on economic growth in North Sumatra Province.
Keywords: Road Infrastructure, Health Infrastructure, Government Spending in Infrastructure, Economic Growth.
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