ANALYSIS OF INFRASTRUCTURE DEVELOPMENT, GROWTH THE ECONOMY, AND POVERTY RATE IN THE PROVINCE WEST NUSA TENGGARA IN INDONESIA

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Wahyunadi, Hj. St. Maryam, H. Mansur Afifi

Abstract

The research aims to measure and analyze the effects of infrastructure development on economic
growth and its contribution to reducing poverty levels in West Nusa Tenggara. The method of
analysis used is quantitative analysis with regression method with panel data (pooled data).
Estimation of model parameters that explain the effect of infrastructure variables on economic
growth and poverty levels uses a simultaneous equation system with the Two-Stage Least Square
(TSLS) method. Estimation of the economic growth model through simultaneous testing (F-test)
shows that all exogenous variables in the model affect economic growth, the coefficient of
determination (Adj R-Sqr) is 0.9712 with the F-count = 25.458 greater than the F-table = 3.93.
The partial test results with the -t-test (t-test), show that the road infrastructure variable (JL), the
Clean Water Infrastructure (AB) variable, and the Health infrastructure variable (PKM) have a
significant effect on economic growth with a probability value of 0.0000. While the electricity
infrastructure variable (LIS) probability value is 0.0466, this result explains partially the effect
but is not significant at the 1% confidence level (α = 0.01). Meanwhile, the labor variable (TK)
has a significant effect on economic growth. The estimation results of the poverty model testing
simultaneously show that all exogenous variables in the model affect poverty. where the
coefficient of determination (Adj R-Sqr) is 0.7891 with the value of Fhit = 743.24 greater than
Ftable = 4.10. The test results with the -t-test (t-test) show that the variable economic growth
(GRDP) and the variable average length of schooling (RLS) significantly affect poverty
reduction in West Nusa Tenggara. Meanwhile, unemployment (PGR) has significantly
contributed to increasing poverty.

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