STUDY OF HIGHWAY IMPACT ON REGIONAL ECONOMIC PERFORMANCE

• Main Author: WIDODO (NIM 25406008), EKO
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/7765
• Institution: Institut Teknologi Bandung

Highway, known as one of basic infrastructure, plays a prominent role in economic development. From regional development perspective, highway is enabling movement or mobility of resources needed by economic activity. One of economic activities that cause and needs the resources at the same time is capital investment. Therefore, highway plays an important role in the capital investment as well. <br /> <br /> <br /> <br /> <br /> <br /> <br /> This study examine the impact of highway existence on capital investment performance of its surrounding regions. A case study is applied to the northern teritorry of West Jawa province. Hence, the impact of Jakarta-Cikampek highway (was operated since 1988) on capital investment performance is analysed. The analysis is applied to the approved FDI and Domestic Investment between 1980 and 2005. Afterwards, character of the impact is then assessed using accessibility index approach. <br /> <br /> <br /> <br /> <br /> <br /> <br /> Applying accessibility indicator defined as multiplication of activity function (of GDP, population) and impedance function (of distance, travel time), locational advantage of a region is then identified. Once the accessibility index for each region is obtained, a correlation between the index and the investment performance is then assessed for entire study area. Accessibility index applied in this study refer to the index introduced in a study implemented by European Commission between 1997-2000. <br /> <br /> <br /> <br /> <br /> <br /> <br /> The result of the study shows a strong correlation between capital investment and accessibility indicator of regions. A region with a high accessibility index (close to 1, for normalized index value ranged between 0 and 1) tend to show a high performance on capital investment. In other word, the higher the index, the more attractive the region, relatively compared to the lower index owner. <br /> <br /> <br /> <br /> <br /> <br /> <br /> This accessibility index could also explain regional unevennes phenomenon, especially that related to capital investment attractiveness. Assuming accessibility indicator for each region in a territory are identified, an effective measures or policy that eliminate the causes then could be taken. The measures or policy should lead to an effort of improving accessibility index of the regions. <br />