The Effects of Government Investment On Economical Growth and Labour Absorption,

and The Inter-Region Disparity and People Welfare in Districts/Cities of West

Kalimantan Province

SUKMA INDRA

Faculty of Economics, University of Tanjungpura

ABSTRACT

The purpose of this research is to test and analyze the effects of government
investment on people welfare in Districts / Cities of West Kalimantn Province through
variables such as economical growth, labor absorption, and inter-region disparity.
The population of this research consists of 9 districts and 2 cities, secondary
using the data from 2004 until 2009 taken from the Central Statistics Agency (BPS)
West Kalimantan Province. Data analysis using path analysis with SPSS package
program.
The research findings are: First, the government investment have a positive
and insignificant effect on economical growth in districts / cities of West Kalimantan
Province. Second, the government onvestment have a positive and insignificant effect
on labor absorption in districts / cities of West Kalimantan Province. Third, the
economical growth have a positive and insignificant effect on labor absorption in
districts / cities of West Kalimantan Province. Fourth, the economical growth have a
negative and insignificant effect on inter-region disparity in districts / cities of West
Kalimantan Province. Fifth, the labor absorption have a positive and insignificant
effect on inter-region disparity in district / cities of West Kalimantan Province. Sixth,
the economical growth have a negative and insignificant effect onpeople welfare in
districts / cities of West Kalimantan Province. Seventh, the labor absorption have a
negative and insignificant effect on people welfare in districts / cities of West
Kalimantan Province. Eighth, the inter-region disparity have a negative and significant
effect on people welfare in districts / cities of West Kalimantan Province.

Keywords: Government Investment, Economical Growth, Labour Absorption, Inter-

region Disparity, Welfare

I. INTRODUCTION

1.1 Background Issues

Policies to achieve economic growth was basically able to increase per capita

income in a country or region, but growth is divided into very uneven. Rustiadi et al

(2009: 222) says development approach with an emphasis on macroeconomic growth,

tend to ignore the development gaps between regions are considerable. Another

standard that can be used to determine the disparity between districts / cities in West

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Kalimantan is the Williamson index. Williamson Indonesia Index declined nationally

but income disparities among provinces is high, it is still seen in the Williamson index

near 1 (one) which in 2005 amounted to 0.618 to 0.553 in 2008. Even though West

Kalimantan Williamson index lower than that of Borneo and Indonesia, the income

dis parity between districts / cities in West Kalimantan is still quite high even tended

to increase, as well as disparities between provinces as Kalimantan.

The prosperity of West Kalimantan continue to improve if only measured by

economic indicators and the growth of income per capita. However, welfare is not

only measured by economic indicators but also look at social indicators. Kuncoro

(2006: 18) said that the development is not an end but only as the instrumental tool to

reduce poverty, employment, and lower the income distribution. Furthermore Kuncoro

mentioned, a key indicator of development outline can basically be classified into: (1)

economic indicators, (2) social indicators.

Human Development Index (Human Developmant Index) is one of the social

indicators, to measure the level of physical and non-physical qualities residents.

Physical qualities; views of longevity as measured by life expectancy. While the non-

physical, judging from knowledge as measured by the weighted average of the

number of adults who can read and average years of schooling, and consider income

as measured by real per capita income that has been adjusted.

Generally, social welfare of West Kalimantan far below other provinces, and

even declined, from position 27 in 2004 to 29 in 2008, although the HDI value

increased from 65.40 in 2004 to 67.08 in 2008. Overall HDI value of each county /

city has increased, but declined nationally ranked. Pontianak city as the capital of the

province is the city's most high HDI value, followed Singkawang. Districts with the

lowest HDI is North Kayong and Sambas.

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 In the perspective of regional development in general and West Kalimantan in

particular, investment is the key determinant of economic growth, because in addition

significantly boosted output (economic growth) and reduce disparities between

regions can also increase employment opportunities and prosperity. Investment is the

mobilization of resources for create or increase production capacity / revenue in the

future. In terms of investment, one needs to separate types of investments made by the

private sector and the government, considering the factors that determine the location

of the two types of investments are not always the same.

In light of the economy, capital expenditure or public investment is important

to provide the facilities and infrastructure development such as ground transportation

that is safe, convenient, fast, efficient in order to open access to county / city that is

still difficult to reach. In addition to transportation, government investment should

also be able to improve the quality and productivity of human resources (HR) to

provide facilities and infrastructure as well as health education. This can be met by

allocating capital expenditures of local governments.

The fundamental problem which often inhibits the difference and the limited

ability of governments in financing development in the districts / cities in West

Kalimantan. In districts / cities in West Kalimantan and varied government investment

is still small, the proportion of capital expenditures to total government expenditure ra

ta average below 30%. The smallest proportion occurred in the Sambas district

average of 15.65% and the largest found in the Ketapang district average of 36.17%,

so there is a difference (range) of 20.52%. Overall during the period of 2004 till 2008

the proportion of capital expenditure to total expenditure districts / cities in West

Kalimantan province on average by 24.43%. Varied and the small investment in

district / city government will affect the realization of social welfare efforts. Based on

empirical facts shows that welfare districts / cities in West Kalimantan low, relatively

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still not achieved as expected. Relatively low economic growth, have not been able to

fully absorb the labor force resulting in a relatively high unemployment and relatively

high disparity antardarah.

1.2. Problem Formulation

Based on the background of the problem and the formulation of the problem is

the headline:

1. Is government investment affect economic growth in the districts / cities in West

Kalimantan province?

2. Is government investment affects employment in the districts / cities in West

Kalimantan province?

3. Is economic growth affect employment in the districts / cities in West

Kalimantan province?

4. Whether economic growth affects the disparity between regions in the districts /

cities in West Kalimantan province?

5. Is the employment effect on inter-regional disparities in the districts / cities in

West Kalimantan province?

6. Whether economic growth affects the welfare of the people in the districts / cities

in West Kalimantan province?

7. Is the employment effect on welfare in the districts / cities in West Kalimantan

province?

8. Is the disparity between regions affect the welfare of the people in the districts /

cities in West Kalimantan

1.3. Research Objectives

Based on the formulation of the problem that have been proposed, the

objectives of this study were:

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1. To examine and analyze the effect of public investment on economic growth in

the districts / cities in West Kalimantan Province.

2. For test and analyze influence investment government against

employment in districts / cities in West Kalimantan Province.

3. To examine and analyze the effect of economic growth on employment in the

districts / cities in West Kalimantan Province.

4. To examine and analyze the effect of economic growth on the disparity between

regions in the districts / cities in West Kalimantan Province.

5. To examine and analyze the effect of employment on inter-regional disparities in

the districts / cities in West Kalimantan Province.

6. To examine and analyze the effect of economic growth on the welfare of the

people in the districts / cities in West Kalimantan.

7. To examine and analyze the effect of employment on the welfare of the people in

the districts / cities in West Kalimantan.

8. To examine and analyze the effect on the welfare of the community interregional

disparities in districts / cities in West Kalimantan.

II. MATERIALS AND METHODS

2.1. Literature Review

2.1.1 Theory of Economic Development

At the end of the 1960s many developing countries realize that growth

(growth) is not i d entik with development. Myrdal in Kuncoro (2006: 11) defines

development as an upward movement of the entire social system. Jhingan (2000: 7)

defines economic development from the point of economic prosperity teller. Todaro

(2006: 22) asserts that development should be viewed as a multidimensional process

which includes a variety of changes in the fundamental social structure, community

5
attitudes, and national institutions, in addition to still pursue economic growth

acceleration, handling income inequality, and poverty alleviation.

Amartya Sen in Todaro (2006: 22-23) found that the capability to function

(capabilities to function) is the most determining whether or not a person's poor status.

Economic growth by itself can not be regarded as the ultimate goal. Development

should pay more attention to improving the quality of life lived and enjoyed freedom.

(In Pressman: 2000: 273) Sen said an important part of well-being is the amount of

choice that belongs to the people and the freedom to choose among the options.

2.1.2 Development of Theory of Public Expenditure

1. Model Construction Progress On Government Spending.

The model was developed by Rostow and Musgrave linking government

spending growth to the stages of economic development is an early stage, middle

stage and later stages (Mangkoesoebroto, 2001: 170). In the early stages of economic

development, the percentage of total government investment to large investment. At

the middle stage of economic development, government investment is still needed to

boost economic growth to take off, but at this stage the role of private investment has

been increasingly besa r. At the economic level further Rostow said that the

government in economic development activities move from the provision of

infrastructure to expenditures for social activities such as old-age welfare programs

and public health services.

2. Wagner Law

Wagner (Mangkoesoebroto, 2001: 171) put forward a theory about the

development of greater government spending as a percentage of GDP. Wagner

expressed the opinion that in an economy where income per capita increases, the

relative government spending will increase. Wagner law known as "The Law of

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Expanding State Expenditure", ie when the income per capita increases, the relative

expenditure has also increased.

2.1.3 Government Expenditure and Economic Growth

Government spending has a major role in improving and maintaining Regat ag

demand and economic growth. One of the components of the aggregate demand is

government spending, if spending increases, aggregate demand will increase.

Government spending is needed to improve the ability of the private sector in

promoting economic growth. Increased demand means the aggregate economic

growth, as measured by the growth of Gross Domestic Product (GDP) or Gross

Regional Domestic Product (GRDP) of the increase in GDP means increased revenue.

There are many factors as a source of economic growth. Harrod-Domar in

Irawan (2002: 51) emphasizes the importance of the role of capital accumulation in

the growth process. Solow in Mankiw (2007: 183) says that growth will occur if the

increase or accumulation of capital, the increase in labor and ever-evolving

technologies. Endogenous theory (New Growth Theory / New Growth Theory)

considers that the fixed capital plays an important role in economic growth, but to

include human capital (human capital) including knowledge into the model.

Capital formation is one determinant factors of economic growth, in this case

the role of government spending as capital formation. Capex is basically an

investment made by the government to support and mempelancar economic and social

activities through the provision of facilities. Capital formation in infrastructure is

generally a critical social overhead capital in economic growth.

2.1.4 Economic Growth and Labor Absorption

The occurrence of economic growth going to production sector in particular

economic activity that would require a production workforce. Adam Smith's view of

labor and productivity as one of the inputs (input) for the production process

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(Kuncoro, 2006: 46), and (in Pressman, 2000: 31). Deals goods in the Solow model is

based on the production function (in Mankiw, 2007: 184 ), which states that output

(Y) depends on the capital stock (K) and labor (L). Solow model extended with

include mode l

human (Human capital) including science knowledge (new growth theory).

Increase the demand for labor depends companies increase demand for goods

and services produced (derive demand) If the economy is growing then labor demand

will also increase, and vice versa if the sluggish economy reduced demand for labor

then the result would be unemployment.

2.1.5 Disparities between regions

Policies to achieve economic growth was basically able to increase per capita

income in a country or region, but growth is divided into very uneven. Kuncoro (2006:

155) and Suparmoko (2002: 1) says there is a trade off between inequality and growth.

Standard disparity between regions in general, using a formula derived from

the calculation Williamson regional per capita income and population in each region.

Williamson index is positive, which lies between 0 - 1 (zero to one). The larger the

index value is close to the mean Willaimson greater disparity between regions within

a region.

2.1.6 Government Investment, Growth and Distribution

Economic and Disparities between regions

Hirschman and Myrdal who do not have a different opinion about the

deployment process of economic growth between regions, resulting to higher levels of

growth in the regions of less developed a country, which ultimately will affect the

decline in per capita income disparities between regions,

According to Hirschman (in Amir, 1987: 36), the "northern (developed area)

8
- South (less developed region) "influence each other, especially when the economic

activity in the regions of the two are complementary, there may be an effect of" trickle

to that "(trickling down), which co-developed the" south. "Myrdal (the Amir, 1987:

38) explains the effect of each region advance to the less-developed regions "efffects

backwash" and "spread effects"

2.1.7 Welfare Theory.

Albert and Hahnel (http / / books.zcommunications) welfare theory classifies

into three types, namely Classical Utilitarianism, Newclassical Welfare Theory and

The New Contractarian Approach. The three classifications welfare theory

emphasizes that individual welfare depends on the level of satisfaction and pleasure.

Sen (1992: 39) prefer the capability approach in determining living

standards. Sen said: the freedom or ability to achive desirable "functionings" is more

importance than actual outcomes.

In outline welfare can be identified through two indicators, namely indicators

of economic and non-economic indicators (social). Kuncoro, 2006: 18). GNP or per

capita income as an indicator of well-being is an economic indicator. Human

Development Index (HDI), and Physical Quality of Life Index (PQLI), a socio-

economic indicators.

2.2. Research Methods

2.2 .1 Research Design

Judging from the issues, objectives, and hypotheses, this research is

explanatory research, ie research that intends to test and explains the effect of public

investment on economic growth, employment, inter-regional disparities in the districts

/ municipalities, and public welfare. Research carried out on objects, documents, and

resource by using the following method:

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 1. Collecting secondary data in the form of time series and cross section are

verified as truth that comes from official institutions such as central and BPS

BPS West Kalimantan Province, as well as from other government agencies.

2. Analyzing secondary data and draw conclusions, in order to address the

problem and prove the research hypothesis.

2.2 .2. Population, Sample and Sampling Techniques

2.2 .2.1. Population

The study population was all districts / cities in West Kalimantan province,

amounting to 11 districts / cities.

2 .2.2. 2. Samples and Sampling Techniques

The research was done by census of the entire population of the 11 (eleven)

districts / cities in West Kalimantan province, therefore this study did not use samples

and sampling techniques.

2.2 .3. Research Variables

2.2 .3.1 Classification of Variables

Classification of the variables used in the study are:

1. Government Investment Variables (X) are classified as exogenous variables

that serves as the cause (independent variable), which is not affected by

variations in the system causes the variables and causal relationship can not be

established. Exogenous variables are variables that influence the beginner

other variables.

2. Variable economic growth (Y1) is an endogenous variable that also act as

intermediate variable (intervening variable) that causes the variation explained

by the variables (independent variable) other models. Variables of economic

growth as measured by gross domestic product growth reginal in each district /

city.
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 3. Variable Labor Absorption (Y 2) is an endogenous variable that also act as

intermediate variable (intervening variable) that the variation is explained by

the variable causes (other independent variables in the model.

4. Variable Disparities Antardaerah Regency / City (Y 3) is classified as an

endogenous variable that also act as intermediate variable (intervening

variable) that the variation is explained by the variable cause (independent

variable) other models.

5. Variable Welfare (Y 4) is treated as endogenous variable dependent variable

variation can be explained by the variable cause (independent variable) in

another model.

2.2 .3.2. Operational Definition of Variables

Operational definition of variables to be analyzed in this study are:

1. Government Investment (X).

Government investment expenditure is undertaken by the government every district /

town in West Kalimantan Province, in order to purchase / procurement of fixed

assets and other assets useful life mempuanyai more than 12 (twelve months) for

use in government activities, such as in the form of land, equipment and

machinery, buildings and bangunaan, networking, library books, and animals,

measured in dollars per year.

2. Growth Economists i (Y 1)

Economic growth is the change in Gross Regional Domestic Product (GRDP) District

/ City of West Kalimantan per year based on cash prices are expressed as a

percent.

3. Labor Absorption (Y 2).

Employment is the labor force that works every economic sector in the

districts / cities in West Kalimantan Province, in satuaan person per year.

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4. Inter-region Disparities(Y 3).

Inter-region Disparities is disparities between region income in the districts / cities in

West Kalimantan Williamson as measured by the index of each district / city.

Williamson index is positive, which lies between 0 - 1 (zero to one). The larger the

index value is close to the mean Willaimson greater disparity between regions

within a region.

5. Welfare Society (Y 4).

Welfare society is a society worth living conditions proxied by the Human

Development Index (HDI) districts / cities in West Kalimantan Province.

HDI value moves between 0-1. A value of 0 indicates human development is

low, and the higher the closer to 1, up to a value of 1 means the HDI measure

in high human development.

2.2.4. Instrument Research

The research instrument used in this study is documentation, the data used is

the panel data combination between data time series and cross section. The type of

data is secondary data obtained from the office of the Central Statistics Agency (BPS),

the National Development Prencanaan (Bappeda), and other institutions involved in

this research.

2.2 .5. Data and Data Collection Procedures

The data used in this study is secondary data obtained from the Central

Statistics Agency (BPS), the Regional Development Planning Board (Bappeda), and

other related agencies, a times series data for four years from 2006 to 2009 and the

cross section of each district in West Kalimantan.

2.2.6 Location and Time of Research

This study uses secondary data over a span of 4 (four) years (2006 till 2009),

in all districts / cities in West Kalimantan.

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2.2.7 Method Data Processing and Analysis

2.2.7.1 How To Process Data

Processing the data in this study conducted in the following manner:

1. To verify the data, to obtain accurate data.

2. Making tabulation well and properly in accordance with the needs analysis.

3. Perform specific data processing software that the Statistical Package for Social

Sciences (SPSS), by means of path analysis (path analysis).

4. Perform analysis of processed data to prove the hypothesis of the study.

2.2 .7.2. Analysis Techniques

Analytical techniques used in this study was the correlation with path

analysis (path analysis). In a path analysis model analyzed is a causal link with the

aim to determine the effect (direct effect), and indirectly (indirect effect) set a variable

to variable due cause.

III. DISCUSSION

Path analysis is used to determine the direct effect between variables. Here are a

path coefficient (path coefficient) of each of the variables directly influence the way a

detailed look at Table 3.1 Government investment have no significant effect on

economic growth. This is attributed to differences in investment district / city of

quantity, type, and components of capital expenditure, so that the relationship of

government investment growth sensitivity to economic growth each district / city is

different, consequently the efficiency of government investment each district / city to

be different.

Government investment have no significant effect on employment. Because it

include more government investment arena devoted to the kinds of capital

expenditures that do not directly affect employment. This means that the investment

made by the district / city in the province of West Kalimantan directed to purchase

13
capital goods that are only supporting existing activities, leading to lack of

employment opportunities. For another, the government investment is spent on capital

expenditures that do not add fixed assets, such as various rental fees, and licensing.

Table 3.1
COEFFICIENT OF LANE IN EACH LANE
Path Testing Results
Influence Between Variables coefficient p - Value
(Beta)
Government Investment → 0.114 0.461 Not Significant
Economic Growth
Government Investment → 0.228 0.136 Not Significant
Labor Absorption
Economic Growth → 0.167 0.279 Not Significant
Labor Absorption
Economic Growth → - 0.152 0.324 Not Significant
Disparit as Inter-Regional
Labor Absorption → 0.161 0.297 Not Significant
Inter-Regional Disparities
Economic Growth → - 0.188 0.221 Not Significant
Welfare
Labor Absorption → - 0.048 0.758 Not Significant
The welfare of local people
Inter-Regional Disparities → - 0.338 0.025 Significant
Welfare
Sources: Processed Path Analysis.

Economic growth have no significant effect on employment. This situation is

as a result of inaccordance of sectoral economic growth with employment sector of

West Kalimantan provincial and district / city.

Economic growth have no significant effect against inter-region disparity.

Inter-region income disparities in districts / cities in West Kalimantan and small tend

to fall in line with economic growth and per capita income has increased, but the

average per capita income of the district / city remains under provincial income per

capita, but the city of Pontianak. Economic growth districts / cities tend varied, as well

as per capita income. Districts / cities that belong to the developed regions, economic

growth is higher than the provincial average is driven by the trade, hotels and

restaurants (PHR), and the industrial sector with per capita income lower than the

provincial average for the economy of the agricultural sector didomiasi , tends to

reduce income disparities between regions, districts / cities.

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 Labor absorption did not influence significantly to inter-regional disparities.

Significance is the employment of the inter-regional disparities are the inaccordance

of employment sectors with sectoral productivity.

Economic growth have no significant economic impact on the welfare of the

community. Insignificant effect of economic growth on the welfare of society is

determined by the value of the components of the HDI. Judging from the size of IPM

shaper there is a difference in terms of acceleration change. Real spending on

consumption is very easy and quick to change, while the literacy rate, the average

length of school, and life expectancy relatively easy to change. Public welfare districts

/ cities in West Kalimantan have this pressure than knowledge.

Labor absorption have no significant negative effect on the welfare of the

community. Insignificant effect on employment welfare community caused by the

accordance of sectoral labor productivity and income sectors.

Income disparities between regions significantly influence the well-being of

society. This suggests that the development carried out in the districts / cities in West

Kalimantan is an uneven development, although equity in income. Equitable income

provide equal opportunity for people to meet all the needs so as to improve their

welfare.

IV. CONCLUSIONS AND SUGGESTIONS

4.1 Conclusion

1. Government investment is not significant effect on economic growth in the

districts / cities in West Kalimantan Province. This is due to the sensitivity of the

relationship changes or the growth of government investment to economic growth

each district / city is different, consequently the efficiency of government

investment in each district / city will be different.

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2. The insignificance of government investment on employment in the districts /

cities in West Kalimantan Province. Causes include for more government

investment devoted to the kinds of capital expenditures that do not directly affect

employment, such as capital equipment expenditures. For another, the government

investment is spent on capital expenditures that do not add fixed assets, such as

various rental fees, and licensing.

3. Economic growth is not a significant effect on employment in the districts / cities

in West Kalimantan Province. This is caused by economic growth districts / cities

further fueled high growth in manufacturing sector (M) and service (S), but the

absorption of labor is low, because the growth of this sector in particular sectors of

service (s) is dominated by the sub-sector by using technology on capital. On the

other hand, the low growth occurred in the sectors of agriculture (A) with high

employment.

4. Economic growth is not a significant effect on income disparities between

regions in the districts / cities in West Kalimantan Province. The reason is the

district / city belonging to the developed regions, economic growth is higher than

the provincial average is driven by the trade, hotels and restaurants (PHR), and the

industrial sector with per capita income lower than the provincial average for the

economy didomiasi agricultural sector, tend to reduce income disparities between

districts / cities.

5. Employment no significant effect on inter-regional disparities in the districts /

cities in West Kalimantan Province. The reason is most of the labor in the district /

municipal sector absorbed agricurture (A) with low productivity, it means that the

economy of the district / city dominated by the agricultural sector have a low

income but high employment. Instead economies district / city dominated by the

manufacturing sector (M) and service (s) to have high productivity but low labor

16
 absorption, meaning that the economy of the district / city dominated by the

manufacturing sector (M) and service (S) have a high income but low

employment.

6. Economic growth is not a significant effect on the welfare of the people in the

districts / cities in West Kalimantan. Economic growth can increase the income of

the district / city, but the increase in income is still largely under provincial

revenue. This situation will affect to the welfare of the people who dikukur with

HDI. Judging from the size of the former IPM there is a difference in terms of

acceleration change.

7. Bepengaruh employment is not significant to the welfare of the people in the

districts / cities in West Kalimantan. For the majority of the workforce in West

Kalimantan province or district / city absorbed in the agriculture sector (A) with

low productivity, so that low-income. Low income makes people who work in

agriculture (A) has a low purchasing power making it difficult to finance

expenditure needs, including education and health. Instead manufakture sector (M)

and service (S) absorption of labor productivity is low but higher apes. People in

the districts / cities whose economies are dominated by manufakture (M) and

service (s) so as to have steeper income purchasing power to finance needs.

8. Significant disparities between regions with negative direction toward the

welfare of the people in the districts / cities in West Kalimantan. Influences are

negative indicates that districts / cities with low disparity will lead to higher

welfare, or the decrease disparities antardaearh will improve the welfare of the

community. Next.

9. Overall, this study contributes to the development of science in the form of

supporting and strengthening the theory and research that includes the role of

government through government spending policies in particular capital

17
 expenditure or investment that governments can create and enhance public welfare

through equalization.

10. The results of this study found that the distribution of development as indicated

by the inter-regioromn disparity significance low to high welfare in districts /

cities in West Kalimantan Province.

11. In this simultaneous model of economic growth, employment, and the disparity

between regions is variable between (entervening variable). If the district / city

has a low economic growth or fall and employment are increasing the welfare of

the community will be high or increase. Meanwhile, low economic growth or fall,

employment increases will result in high or low or decreased interregional

disparities, inter-region disparities low end or fall resulting in social welfare in the

districts / municipalities in the Province

4.2 Suggestion

1. In the era of regional autonomy, local governments are required to be able

mensejahteraan community. Therefore, local governments are expected to further

increase capital expenditure or investment in the form of government and the kind

that can drive economic growth and employment.

2. To reduce disenparitas regions and simultaneously improve the welfare of the

people can be taken in the allocation of public investment with a pattern of

allocation of public investment to encourage or stimulate the growth of economics

districts / cities that have small growth such as Sambas, Landak District, Sintang,

Kapuas Hulu district, Melawi and Singkawang.

3. To perform service functions to the private sector, the accelerating pace of

investment Melawi County government needs to be improved in the short term as

possible. For Sambas district, Landak District, Sintang, Kapuas Hulu, Pontianak,

and Singkawang the increased rate in the allocation of government investment in

18
 the future needs to be improved. As for the Bengkayang, Ketapang, and District

Sekadau investment directed to support the activities of the private sector in the

provision of economic infrastructure necessary local activities respectively.

4. Public investment should be increased with directions for improving the quality

of human resources with improved access to health and education as an important

policy tool as the government's strategy to improve the Human Development

Index (HDI) As with welfare indicators.

5. Equitable development and its results need to be improved in all districts / cities

in order to create employment opportunities that can reduce the rate of

urbanization is very detrimental blood left by increasing government investment in

infrastructure.

6. In order to further scientific development, is needed more in-depth empirical

studies related to the theme of this study. That further research is expected to

expand the area of research and a longer period of time, using new theories, as

well as make use of dimensions and measures more welfare.

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