Regional Economic Growth and the Heterogeneity Effect of Rail Network Connectivity in West Java Province

Abstract

This paper aims at determining the heterogeneity effect of rail network connectivity influence on regional economic growth in West Java Province employing a multiple linear regression analysis approach to panel data covering 27 districts/cities in 2010-2018. There are several variables that are used as input variables for analysis such as GRDP per capita (PDRBPKit) as the dependent variable, connectivity (Konektivitasit) as the independent variable, and economic variables (Public Government Investment per capita (invpit); Private Investment per capita (invsit); Human Capital (ipmit); Agricultural Contribution (agricultureit); Industry Contribution (industriit); Service Contribution (jasait); and Population (populationit) as control variables. Some control variables show significant results in the heterogeneity effect. The results obtained show that the interaction of rail network connectivity with government investment and the contribution of the service sector is negative, the contribution of the industrial sector and population is positive.