Influence Of Infrastructure Development And Foreign Debt On Economic Growth In Indonesia

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Asni , Prof. Dr. I.Made Benyamin , Dr. Anas Iswanto Anwar , Dr. Sri Unday Nurbayani

Abstract

This study analyzes the influence of the Indonesian government's policy in carrying out infrastructure development through the burden of foreign debt and its effect on economic growth. The analysis method is carried out using time-series data regression analysis techniques using Indonesian data for the period 2005-2020 to see the effect of the government's external debt burden and infrastructure development in aggregate on economic growth.


 The findings of this study are, first, the negative influence of government foreign debt appears in the form of a debt overhang, but not in the form of a crowding out effect. Second, infrastructure development has a positive and significant impact on economic growth. Comparison between the negative effects of foreign debt.


government and the positive influence of infrastructure development shows the value of potential benefits is much greater than the value of potential risks.

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