Government Governance, Government Quality, Transportation Infrastructure, and the Economic Growth: Evidence from Indonesia

Andri Zainal; Tengku Citra Nisa  Farza; Pasca Dwi  Putra; Khairunnisa  Harahap; Yerisma Welly

doi:10.33059/jseb.v14i1.5701

Andri Zainal Universitas Negeri Medan
Tengku Citra Nisa Farza Sekolah Tinggi Agama Islam (STAI) Syekh H. Abdul Halim Hasan Al-Ishlahiyah
Pasca Dwi Putra Universitas Negeri Medan
Khairunnisa Harahap Universitas Negeri Medan
Yerisma Welly STIE Sultan Agung

DOI: https://doi.org/10.33059/jseb.v14i1.5701

Keywords: Economic Growth, Government Governance, Government Quality, Indonesia, Transportation Infrastructure

Abstract

This study aims to provide a descriptive analysis of the relationship between government administration, quality of government, transportation infrastructure, and economic growth in Indonesia during the period 2001 to 2018. The results of the analysis show that road length has a positive relationship with economic growth, while the amount of loading and unloading of goods domestic and foreign shipping has a negative relationship with economic growth. Government quality (as stated by Unqualified Opinion on the financial reports of the Ministry of Communications and the Ministry of Public Works and Public Housing provided by the Supervisory Board of the Republic of Indonesia) shows good quality results over the last three years.

References

Acemoglu, D., Johnson, S., & Robinson, J. A. (2002). Reversal of fortune: Geography and institutions in the making of the modern world income distribution. The Quarterly Journal of Economics, 117(4), 1231-1294. https://doi.org/10.1162/003355302320935025.

Agus, D. (2011). Mewujudkan good governance melalui pelayanan publik. Gajah Mada University Press.

Aron, J. (2000). Growth and institutions: A review of the evidence. World Bank Research Observer, 15(1), 99-135. https://www.jstor.org/stable/3986503.

Awandari, I. P. P., & Indrajaya, I. G. B. (2016). Pengaruh infrastruktur, investasi, dan pertumbuhan ekonomi terhadap kesejahteraan masyarakat melalui kesempatan kerja. Jurnal Ekonomi Pembangunan Universitas Udayana, 5(12), 1435-1462. https://ojs.unud.ac.id/index.php/eep/article/view/24308.

Aysan, A. F., Nabli, M. K., & Veganzones-Varoudakis, M-A. (2007). Governance institutions and private investment: An application to the Middle East and North Africa. The Developing Economies, 45(3), 339–377. https://doi.org/10.1111/j.1746-1049.2007.00042.x.

Badan Pemeriksaan Keuangan RI. (2018). Ikhtisar hasil pemeriksaan semester. https://www.bpk.go.id.

Badan Pusat Statistik. https://www.bps.go.id.

Bappenas, K. N. P. P. N. (2012). Kajian evaluasi pembangunan bidang transportasi di Indonesia. https://kuliahtransportasi.wordpress.com/2017/10/06/kajian-evaluasi-pembangunan-bidang-transportasi-di-indonesia/.

Bappenas, K. N. P. P. N. (2012). Kajian Evaluasi Kebijakan Pembangunan Transportasi: Perkeretaapian dan Pelabuhan Laut. https://sirusa.bps.go.id/sirusa/index.php/sektoral/pdf?kd=7094&th=2014.

Beck, T., & Laeven, L. (2006). Institution building and growth in transition economies. Journal of Economic Growth, 11(2), 157-186. https://www.jstor.org/stable/40216092.

Canning, D., & Pedroni, P. (2004). The effect of infrastructure on long run economic growth. Harvard University, 99 (9), 1-30. https://web.williams.edu/Economics/wp/pedroniinfrastructure.pdf.

Competitiveness global report. https://www.weforum.org.

Crain, M., & Oakley, L. K. (1995). The politics of infrastructure. Journal of Law and Economics, 38, 1–17. https://www.jstor.org/stable/725815.

Crescenzi, R., Di Cataldo, M., & Rodríguez-Pose, A. (2016). Government quality and the economic returns of transport infrastructure investment in european regions. Journal of Regional Science, 56(4), 555–582. https://doi.org/10.1111/jors.12264.

De, P. (2010). Does governance matter for enhancing trade? Empirical evidence from Asia. Governance Working Papers, 22792. East Asian Bureau of Economic Research.

Farza, T. C. N., & Zainal, A. (2018). How the government quality can help boosting infrastructure investment and economic growth? A closer look at Indonesia’s practice. International Journal of Academic Research in Business and Social Sciences, 8(7), 542-553. http://dx.doi.org/10.6007/IJARBSS/v8-i7/4396.

Farmer, R. E. A. (1999). Endogenous Growth Theory. Macroeconomics (2nd ed.). South-Western.

Hall, R. E., & Jones, C. I. (1999). Why do some countries produce so much more output per worker than others?. Quarterly Journal of Economics, 114(1), 83-116. http://www.jstor.org/stable/2586948.

Henisz, W. J. (2002). The institutional environment for infrastructure investment. Industrial and Corporate Change, 11, 355–389. https://doi.org/10.1093/icc/11.2.355.

Huang, C. (2006). Government expenditures in China and Taiwan: Do they follow Wagner’s law?. Journal of Economic Development, 31(2), 139-148. file:///F:/_DATA%20C/Downloads/Government_expenditures_in_China_and_Taiwan_Do_the.pdf.

Hutapea, H. L., & Widyaningsih, A. (2017). Pengaruh good government governance dan ukuran legislatif terhadap kinerja pemerintah daerah (Studi pada pemerintah provinsi di Indonesia). Jurnal ASET (Akuntansi Riset), 9(1), 173-186. https://doi.org/10.17509/jaset.v9i1.5446.

Kartiasih, F. (2019). Dampak infrastruktur transportasi terhadap pertumbuhan ekonomi di Indonesia menggunakan regresi data panel. Jurnal Ilmiah Ekonomi dan Bisnis. 16(1), 67-77. https://doi.org/10.31849/jieb.v16i1.2306.

Kaufmann, D. (2003). Governance redux: The empirical challenge. Working paper, MPRA Paperi, 8210. https://dx.doi.org/10.2139/ssrn.541322.

Kaufmann, D., Kraay, A., & Mastruzzi, M. (2005). Governance matters IV: Institute global governance for 1996-2004. Policy Research Working Paper. World Bank. https://dx.doi.org/10.2139/ssrn.718081.

Kaufmann, D., & Kraay, A. (2007). Governance indicators: where are we, where should we be going?. Policy Research Working Paper, No. 4370. The World Bank. https://openknowledge.worldbank.org/handle/10986/7588.

Kaufmann, D., Kraay, A., & Zoido-Lobaton, P. (2009). Governance matters VII: Aggregrate and individual governance indicators for 1996-2008. Policy Research Working Paper, No. 2772. World Bank. https://openknowledge.worldbank.org/handle/10986/6870.

Komite Pengawas Pelaksanaan Otonomi Daerah (KPPOD). (2016). Tata kelola ekonomi daerah (TKED)2016. KPPOD Pusat.

Kurtz, M. J., & Schrank, A. (2007). Growth and governance: Models, measures, and mechanisms. Journal of Politics, 69(2), 538-554. https://doi.org/10.1111/j.1468-2508.2007.00549.x.

Ma’ruf, Y. P., & Daud, J. (2015) Pengaruh investasi infrastruktur jalan terhadap pertumbuhan ekonomi wilayah di Kabupaten Pesisir Selatan Provinsi Sumatera Barat. Jurnal Teknik Sipil USU. 2(3). https://jurnal.usu.ac.id/index.php/jts/article/view/5680.

Ministry of National Development Planning / National Development Planning Agency. (2015). National medium term development plan 2015-2019, 313. https://doi.org/10.1017/CBO9781107415324.004.

Mohmand, Y. T., Wang, A., & Saeed, A. (2017). The impact of transportation infrastructure on economic growth: Empirical evidence from Pakistan. Transportation Letters, 9(2), 63–69. https://doi.org/10.1080/19427867.2016.1165463.

Nassaji, H. (2015). Qualitative and descriptive research: Data type versus data analysis. Language Teaching Research, 19(2),129-132. https://doi.org/10.1177/1362168815572747.

OECD (2015). Public Governance and Territorial Development Directorate Public Governance Committee. OECD. Italia.

Pere, E. (2015). The impact of good governance in the economic development of western Balkan countries. European Journal of Government and Economics, 4(1), 25–45. http://dx.doi.org/10.17979/ejge.2015.4.1.4305.

Rodrik, D., Subramanian, A., & Trebbi, F. (2002). Institutions rule: The primacy of institutions over geography and integration in economic development. NBER Working Paper, 9305. https://doi.org/10.1023/B:JOEG.0000031425.72248.85.

Romer, D. (2011). Endogenous Growth. in Advanced macroeconomics (4th ed.). McGraw-Hill.

Romer, P. M. (1994). The origins of endogenous growth. The Journal of Economic Perspectives, 8(1), 3–22. https://www.jstor.org/stable/2138148.

Sahoo, P., Dash, R. K., & Nataraj, G. (2012). China’s growth story: The role of physical and social infrastructure. Journal of Economic Development, 37(1), 53–75. http://dx.doi.org/10.35866/caujed.2012.37.1.003.

Silondae, S., Muthalib, A. A., & Ernawati. (2016). Keterkaitan Jalur transportasi dan interaksi ekonomi Kabupaten Konawe Utara dengan kabupaten/kota sekitarnya. Jurnal Progres Ekonomi Pembangunan, 1(1), 49-64. http://dx.doi.org/10.33772/jpeb.v1i1.871.

Siregar, M. A. (2008). Penerapan tata kepemerintahan yang baik dalam penyelenggaraan pengadaan barang dan jasa pemerintahan Provinsi Bengkulu. Tesis. Program Pascasarjana Magister Ilmu Hukum Universitas Diponegoro.

Stanley, M. (2014). Qualitative descriptive: A very good place to start. Qualitative Research Methodologies for Occupational Science and Therapy, 37-52. Routledge.

Sutarsono. (2012). Hubungan tata kelola pemerintahan, infrastruktur dan pertumbuhan ekonomi di Indonesia. Tesis. Sekolah Pascasarjana Institut Pertanian Bogor.

Ulya, F. N. (2019). Anggaran infrastruktur naik 4,9 persen jadi Rp. 419,2 triliun. https://money.kompas.com/read/2019/08/17/100600926/2020-anggaran-infrastruktur-naik-4-9-persen-jadi-rp-419-2-triliun.

Vaismoradi, M., & Snelgrove, S. (2019). Theme in Qualitative Content Analysis and Thematic Analysis. Forum: Qualitative Social Research, 20(3), Art. 3. https://doi.org/10.17169/fqs-20.3.3376.

Yu, N., De Jong, M., Storm, S., & Mi, J. (2012). The growth impact of transport infrastructure investment: A regional analysis for China (1978-2008). Policy and Society, 31(1), 25–38. https://doi.org/10.1016/j.polsoc.2012.01.004.