Re-evaluating Infrastructure-Led Development: The Missing Link in Regional Economic Expansion


Authors

(1) * Dinda Aimi Adzani   (Universitas Al-Azhar di Kairo, Mesir)  
        Egypt
(2)  Ardelia Nabila Hermayana   (Universitas Al-Azhar di Kairo, Mesir)  
        Egypt
(*) Corresponding Author

Abstract


Infrastructure development is widely regarded as a key driver of regional economic expansion, yet its actual contribution remains subject to debate. This study aims to re-evaluate the role of infrastructure-led development by examining the effects of road, water, and electricity infrastructure on Gross Regional Domestic Product (GRDP) growth. A quantitative approach was employed using secondary annual data from 2018–2022 obtained from government statistical agencies and public utility institutions. Multiple linear regression analysis was performed using SPSS Version 24, complemented by classical assumption and hypothesis testing. The results show that road infrastructure (Sig. = 0.303), water infrastructure (Sig. = 0.206), and electricity infrastructure (Sig. = 0.652) did not significantly affect GRDP growth, while the model explained 60.5% of the variation in economic growth (Adjusted R² = 0.605). These findings contribute to the infrastructure-growth debate by demonstrating that infrastructure alone may be insufficient to stimulate economic expansion. Policymakers should integrate infrastructure investment with broader economic development strategies.



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