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Author / Dewan Bahasa Pustaka
Dewan Bahasa Pustaka
This paper is about narratives against the mathematization of economics. Based on Stuart Mill's scientific inquiries, quoted from A System of Logic, Ratiocinative, and Inductive (1851), some important points are parallel with the essence of the mathematization of economics. However, writings of Nobel Laureates are offered to criticize it, and thus provide the disfavor to the mathematization of economics. This paper conceives that even if mathematics is applied to economics, it should only be complimentary and subject to improvement. It should not act forcibly upon equating economics to natural or pure science.
The paper investigates the impact of infrastructure development on income per capita using a panel data set covering 12 developing countries from 1983 to 2020. The paper applies three estimation methods Panel Pooled Mean Group (PMG), Full-Modified OLS (FMOLS), and Dynamic-OLS (DOLS) to deal with the issues of heterogeneity and endogeneity. The PMG estimator shows income per capita positively is influenced by infrastructure investment and remittance inflow, but the result for trade is insignificant. For the robustness examination, the study performed the FMOLS and DOLS methods. The results also show the positive impact of infrastructure investment on income per capita. Thus, one of the key policy implications of the study is that the policy authorities need to support proper infrastructure investment as means of promoting income and alleviating poverty.