WHY INFRASTRUCTURE STILL CHALLENGING IN ASIA? MODIFIED SOLOW GROWTH MODEL APPROACH

Abstract

Infrastructure is an essential part of a country's economic growth. Previous research has shown that infrastructure has a positive effect on growth. However, this study shows that infrastructure relative minor effect on economic growth, and inter- island development inequality in Indonesia is vast. By using the Modification of the Solow model, we examine on infrastructure under branch Ministry of Public Works and People's Housing. It’s consisted of highway, road and bridge area, water resources area, human settlements area, and housing provision area. Further research needs to clarify this research.