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Infrastructure and human development: the case of Java, Indonesia

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This study examines the relationship between infrastructure and human development in Java, Indonesia, using regency-level 2002–2005 panel data. We find that improving infrastructure significantly enhances human development. In particular, electricity infrastructure has a greater influence on human development than other types of infrastructure, such as clean water, roads or the number of classrooms per student. We find that for every 1% increase in the proportion of households with electricity, the human development index (HDI) increases by 0.2%. Improvements in other types of infrastructure lead over the long run to lesser increases in the HDI, ranging from 0.01% to 0.03%.
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Keywords: Java; O15; O18; R11; human development index; infrastructure; panel data

Document Type: Research Article

Affiliations: 1: BPS-Statistics Indonesia, Jakarta, Indonesia 2: Graduate School of International Studies, Yonsei University, Seoul, Korea

Publication date: 06 January 2011

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