The Influence of Infrastructure Development, Local Community Engagement, and Digital Promotion on Economic Welfare in Kudus

Abstract

This study investigates the determinants of regional economic welfare across eight strategic tourism destinations in Kudus Regency, focusing on the interplay between physical infrastructure, local community participation, and digital promotion. Using a quantitative approach, economic welfare is operationally defined through indicators of household income, MSME profits, job opportunities, and productive asset accumulation. Data were collected via stratified random sampling from 100 integrated respondents, including local residents, MSME players, and tourists, to validate economic impact from both supply and demand perspectives. Multiple linear regression analysis conducted through EViews 8 reveals that infrastructure development ($X_1$) yields no significant impact on economic welfare ($p=0.190$), suggesting a saturation point in physical facilities. Conversely, community participation ($X_2$) shows a significant yet negative correlation ($p=0.011$), indicating a "social cost" where administrative engagement hinders household productivity. Digital promotion ($X_3$) emerges as the most dominant determinant ($p=0.000$), effectively bridging the information gap and minimizing economic leakage. Despite a moderate Adjusted R-squared of 0.1596, the model is statistically robust with a simultaneous significance (F-test) of 0.000191. The study concludes that regional economic acceleration in Kudus depends more on digital literacy and professionalized community management than on physical accessibility alone. Consequently, local authorities are recommended to shift policy focus toward integrating public facilities with creative economy hubs to ensure sustainable and inclusive economic growth.