The interplay of road infrastructure and regional finance in driving economic growth : insights from East Kalimantan

Rohmini Indah Lestari, Budi Wardono, Mudjiastuti Handajani, Supari Supari, Herma Juniati, Mas Tri Djoko Sunarno, Erwin Prayogi

This study examines the effect of road infrastructure and regional finance on regional economic growth in the recently designated capital city of Indonesia. The empirical data employed in this study originates from ten regencies/cities in East Kalimantan and has been observed from 2013 to 2022. This investigation utilises a moderated mediation model. The analysis tool employs the structural equation partial least squares (PLS) approach, utilising the Warp 8.0 software. Regional finance acts as a full mediator between road infrastructure and regional economic growth. The moderating effect of road infrastructure on this relationship is −0.434, indicating that it significantly reduces the influence of regional finance on regional economic growth. Furthermore, the study identified a threshold between the impact of regional finance on economic growth, which is depicted in the S curve. This study contributes to the existing literature on endogenous economic growth.

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Year of publication:	2025
Authors:	Lestari, Rohmini Indah ; Wardono, Budi ; Handajani, Mudjiastuti ; Supari, Supari ; Juniati, Herma ; Sunarno, Mas Tri Djoko ; Prayogi, Erwin
Subject:	Economic growth \| Endogenus theory \| Moderated mediation \| Regional finance \| Road infrastructure \| Wirtschaftswachstum \| Verkehrsinfrastruktur \| Transport infrastructure \| Infrastrukturinvestition \| Infrastructure investment \| Theorie \| Theory \| Straßenfinanzierung \| Road financing

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.1016/j.joitmc.2024.100444 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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