Infrastructure, Economic Growth and Inequality in Indonesia Land Borders

The purpose of this study is to analyze the impacts of infrastructure on economic growth and inequality in Indonesia land borders. Using static panel data regression and panel two stage least square (2SLS) estimation methods, this study shows that social infrastructure can raise per capita income. The social infrastructures being discussed are number of high schools and number of health facilities. Telecommunication facility can also raise per capita income. In addition, income inequality is found to be positively influenced by income per capita growth and industry sector laborer. It also suggests that infrastructure has indirect relation with income inequality through per capita income