Relationship of Road Infrastructure to Economic Inequality in Central of Java

Abstract

Economic inequality is a evidence of income inequality between per capita in a region. Many factors, one of which is due to destitute road conditions in connecting between regions. Therefore, three objectives in this study: knowing the impact of road infrastructure on the level of Groos Domestic Product; knowing the level of economic inequality; and analyze the relationship of road infrastructure to the level of economic inequality in Central Java. The research method is a regression analysis with using Eviews 9. GDP per capita acts as a dependent variable. Meanwhile number of people experiencing poverty, length of road, number of vehicles, and government spending are independent variable. The best test model is Fixed Effect Model, after testing Chow and Hausman Test. The results is the number of people experiencing poverty had no significant (negative) effect on GDP per capita in Central Java. Meanwhile, the others variable have no impact on the GDP per capita of Central Java. The results it was obtained that the level of economic inequality in 2018 to 2021 is influenced by GDP per capita and the number of people experiencing poverty.