The output effects of infrastructure investment and use in Indonesia
Event details
ACDE Seminar
Date & time
Venue
Speaker
Contacts
This paper addresses an issue that vexes current public debate in Indonesia: To what extent is economic growth held back by underinvestment in the country’s infrastructure facilities? Is infrastructure investment actually productive, given that Indonesia’s current President has made it a priority, although economic growth appears stuck at 5 to 6 percent per year? The paper identifies the output effects of increasing infrastructure investment and infrastructure use in Indonesia. It analyses annual data for 1968-2018 on (a) investment and capital stock in the public sector, (b) infrastructure-related investment in machinery and equipment, transport equipment, public works, and structures for public utilities and communications, and (c) indices of the use of infrastructure for transport, public utilities and communications in Indonesia. Using a Bayesian Vector AutoRegression (BVAR) framework, the paper finds positive long-run elasticities of GDP with respect to public capital, infrastructure-related investment, and infrastructure use.
All welcome; no registration necessary.
https://anu.zoom.us/j/427393883
To join the mailing list for this seminar series, please email seminars.economics@anu.edu.au
Updated: 18 April 2024/Responsible Officer: Crawford Engagement/Page Contact: CAP Web Team