Road to Prosperity: The Role of Road Development Toward Poverty Reduction in Indonesia

Galih Baskara Aji, S.E., Dr. Yoichi Okita

2011 | Tesis | S2 Magister Ek.Pembangunan

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This study estimates the impact of road development on poverty reduction in Indonesia. The result shows that road development has positive marginal impact on poverty reduction. The impact of road development on poverty reduction is going through many channels. These channels are labor productivity, urbanization, and economic growth. Development in road sector is not enough to reduce poverty; other public investments such as education, electricity, and irrigation are also important to reduce poverty. Investment in education has the largest impact on reducing poverty, whereas road sector development has the second largest on reducing poverty. The development in energy sector becomes the third largest, whereas irrigation has the smallest impact on poverty reduction.

Kata Kunci : Poverty, Road Development