The Role of Road Infrastructure in Regional Economic Development: Evidence from Simalungun Regency, Indonesia
Vivi Julianti *
Regional and Rural Development Planning, Graduate School, Medan, Universitas Sumatera Utara, Indonesia.
Heru Santosa
Regional and Rural Development Planning, Medan, Universitas Sumatera Utara, Indonesia.
Tengku Erry Nuradi
Regional and Rural Development Planning, Medan, Universitas Sumatera Utara, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
This study investigates the relationship between land transport infrastructure and regional economic development in Simalungun Regency, Indonesia, from 2010 to 2022. Using a quantitative correlational method, the research examines the impact of road length and vehicle volume on three economic indicators: regional income (PDRB), employment rates, and the growth of micro, small, and medium enterprises (MSMEs). Spearman's rho test was employed due to non-normal data distribution, revealing that road length has a very strong and statistically significant correlation with employment (ρ = 0.851; p = 0.032), and a strong but non-significant relationship with PDRB and MSMEs. Conversely, vehicle volume showed weak and statistically insignificant correlations across all indicators. These findings suggest that physical infrastructure—especially road availability—plays a more pivotal role in facilitating regional labor mobility and economic distribution than vehicle accumulation. The study recommends an integrated, spatially targeted infrastructure policy emphasizing road development in high-potential but under-connected regions, aligned with Indonesia’s current fiscal efficiency agenda.
Keywords: Road infrastructure, regional economic development, employment, MSMEs (Micro, Small and Medium Enterprises)