Financing cross-border road connectivity: Potential impact on Sabah’s output—An input-output table analysis

Rafiq Idris and Azizan Morshidi and Kasim Mansur and Rizal Zamani Idris (2024) Financing cross-border road connectivity: Potential impact on Sabah’s output—An input-output table analysis. Journal of Infrastructure, Policy and Development, 8 (10). pp. 1-9. ISSN 2572-7923

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Abstract

Fiscal spending for road construction to link Kalabakan, Sabah, Malaysia with North Kalimantan, Indonesia is an idea that have been proposed for over 20 years. The announcement for the relocation of Indonesia’s capital city from Jakarta to East Kalimantan give a strong justification for the construction of the Serudong-Simanggaris road. The fact that population size is big in Kalimantan and strong purchasing power is estimated in North and East Kaliamantan provide a strong argument for the need to have a road link. Having said that, the effect of road construction on output growth is not clear. The purpose of this study is to estimate the impact of road construction and the business activities across two sectors being assumed on output Sabah’s output growth. Based on the input-output analysis conducted using the output multiplier, the one-off road construction would lead to 1.8% growth in Sabah’s overall output.

Item Type:	Article
Keyword:	Fiscal; financing; Sabah; Kalimantan; road infrastructure; para-diplomacy; inputoutput table; economy
Subjects:	H Social Sciences > HC Economic history and conditions > HC10-1085 Economic history and conditions > HC79 Special topics Including air pollution, automation, consumer demand, famines, flow of funds, etc. T Technology > TE Highway engineering. Roads and pavements > TE1-450 Highway engineering. Roads and pavements
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	ABDULLAH BIN SABUDIN -
Date Deposited:	16 May 2025 12:46
Last Modified:	16 May 2025 12:46
URI:	https://eprints.ums.edu.my/id/eprint/43753

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