THE ROLE OF INFRASTRUCTURE IN DRIVING ECONOMIC GROWTH: A REVIEW FROM A DEVELOPMENT ECONOMICS PERSPECTIVE

Abstract

This research aims to investigate the role of infrastructure in influencing economic growth from a development economics perspective. Adequate infrastructure has been recognized as the main key in supporting sustainable economic growth. However, empirical studies that reveal the specific mechanisms and impacts of infrastructure on economic growth are still limited, especially in the context of developing countries such as Indonesia. This research uses a qualitative approach with descriptive methods. The research results show that adequate infrastructure in Indonesia, especially in transportation, energy, information technology and health, provides great opportunities to encourage inclusive and sustainable economic growth. This not only increases production and distribution efficiency, but also increases the country's competitiveness in attracting investment, as well as expanding accessibility to various regions and improving people's quality of life. However, the impacts of infrastructure development have complex aspects, including job creation and increased access to basic services, but also high costs, adverse environmental impacts and social inequality. Therefore, while exploiting the economic potential offered, mitigation measures are needed to minimize negative impacts and ensure equitable and inclusive development for all levels of society and regions.