scholarly journals THE FACTORS INFLUENCING ECONOMIC GROWTH IN INDONESIA

2020 ◽  
Vol 8 (1) ◽  
Author(s):  
Dian Citra Amelia

This research is based on the fact that the state of economic growth in Indonesia tends to fluctuate, even more often decrease. This is because the government policy is not appropriate to improve the economic growth of Indonesia. This study aims to determine and analyze the factors of foreign direct investment, inflation, international trade, and government expenditure that affect economic growth in Indonesia. The problem in this research is due to the limited fund in economic development both structure and infrastructure so that economic growth tends to decrease. Therefore, appropriate strategies must be taken to overcome the limitations in promoting economic growth. From this problem, this research aims to see how big influence of foreign direct investment (FDI), inflation (INF), international trade (NX) and government expenditure (GE) variable to economic growth. The data used in this study is secondary data (periodical data) in the period of observation 1996-2014 obtained from the World Bank and Statistics of Indonesia. To identify the influence of the variables used in this study used the VAR (Vector Autoregression) method. The results of this study show that equation regression shows that FDI (-1) has a negative influence on economic growth and FDI (-2) has a positive effect on economic growth, INF (-1) and INF (-2) have positive effects on economic growth , Variable NX (-1) has a positive effect on economic growth but NX (-2) has a negative effect on economic growth, and GE variable (-1) has a positive effect on economic growth while GE (-2) has a negative effect on growth Economy.

2019 ◽  
Vol 8 (1) ◽  
pp. 34
Author(s):  
Dian Citra Amelia ◽  
Sri Fajar Ayu

This research is based on the fact that the state of economic growth in Indonesia tends to fluctuate, even more often decrease. This is because the government policy is not appropriate to improve the economic growth of Indonesia. This study aims to determine and analyze the factors of foreign direct investment, inflation, international trade, and government expenditure that affect economic growth in Indonesia. The problem in this research is due to the limited fund in economic development both structure and infrastructure so that economic growth tends to decrease. Therefore, appropriate strategies must be taken to overcome the limitations in promoting economic growth. From this problem, this research aims to see how big influence of foreign direct investment (FDI), inflation (INF), international trade (NX) and government expenditure (GE) variable to economic growth. The data used in this study is secondary data (periodical data) in the period of observation 1996-2014 obtained from the World Bank and Statistics of Indonesia. To identify the influence of the variables used in this study used the VAR (Vector Autoregression) method. The results of this study show that equation regression shows that FDI (-1) has a negative influence on economic growth and FDI (-2) has a positive effect on economic growth, INF (-1) and INF (-2) have positive effects on economic growth , Variable NX (-1) has a positive effect on economic growth but NX (-2) has a negative effect on economic growth, and GE variable (-1) has a positive effect on economic growth while GE (-2) has a negative effect on growth Economy.


2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Regina Septriani Putri ◽  
Ariusni Ariusni

Abstract : This study examined and analysis the effect of remittances, foreigndirect investment, imports, and economic growth in Indonesia in the long run andshort run. This study using Error Correction Model (ECM) method and using theannual time series data from 1989 to 2018. This study found that: (1) remittancehave an insignificant positive effect on economic growth in the long run and shortrun,(2)foreign direct investment have a significant positive impact on economicgrowth in the long run and short run, (3) import have an insignificant positiveimpact on economic growth both in the long run and short run. To increase theeconomic growth in the future, this study suggests the government to decresingimports of consume goods and increasing the inflow of capital goods, rawmaterial goods, remittances and foreign direct investment.Keyword : Remittance, Foreign Direct Investment, Import, Economic Growth andECM


2020 ◽  
pp. 22
Author(s):  
Adhitya Wardhana ◽  
Bayu Kharisma ◽  
Sarah Annisa Noven

This study aims to see the effect of population dynamics variables on economic growth in Indonesia. This study uses the Ordinary Least Square model with time series data from 1986 to 2016. The data used are population dynamics variables, such as number of fertilities, infant mortality, with the variable control are the amount of labor, savings and government expenditure on economic growth measured through Gross Domestic Product. The results os the study showed that the fertility amount in Indonesia has a negative effect on the amount of economic growth in Indonesia, which means that increasing population will reduce economic growth in Indonesia. then, variable infant mortality has a negative influence on economic growth in Indonesia. Fertility variables and the population of productive age have a positive effect on labor force participation rates. Control variables, like savings and government expenditure, also have a positive effect on economic growth in Indonesia.


2016 ◽  
pp. 234-244
Author(s):  
Eglantina Hysa ◽  
Livia Hodo

Theoretical studies strongly support the positive effects of Foreign Direct Investment (FDI) in the Gross Domestic Product (GDP) of the host country through technology transfer, human capital formation, etc. This study aims to examine the real effects of FDI in the economic growth of Albania, since FDI was one of the first pillars of the economy that the government gave priority to after 1990. This relationship was investigated by using the Co-Integration approach for the quarterly data from 1991 to 2012. The time series data are taken from the Bank of Albania. As expected, the empirical findings of this study reveal the existence of a long run relationship of GDP growth and FDI to GDP ratio. Being strongly correlated to each other, FDI to GDP ratio shows its significant contribution to Albanian economic growth.


2021 ◽  
Vol 10 (1) ◽  
pp. 149-160
Author(s):  
Muhammad Safar Nasir ◽  
Ana Rahmawati Wibowo ◽  
Dedy Yansyah

The purpose of this research to examine influence several independent variables, especially corruption, foreign direct investment (FDI), population growth, and government expenditure on the economic growth of 10 Asia-Pacific countries, and prove the hypothesis of the sand wheels theory whether corruption causes a decline and a slowdown in economic growth. This study uses panel data. The results showed that the variables of corruption have a negative impact on economic growth, foreign direct investment (FDI), and government expenditure have positives that significantly affect the level of economic growth in 10 Asia-Pacific countries. However, population growth does not significantly affect economic growth. The result implies that corruption has a negative effect on economic growth in 10 Asia-Pacific countries. Such an outcome provides evidence and confirms the hypothesis that corruption can sand the wheel of an economy. Countries must eradicate all forms of corruption and maintain a conducive investment climate so that there is a level of trust, especially in the Asia-Pacific countries, to create productive economic growth.JEL Classification: O47, D73, C12How to Cite:Nasir, M. S., Wibowo, A. R., & Yansyah, D. (2021). The Determinants of Economic Growth: Empirical Study Of 10 Asia-Pacific Countries. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 149-160. https://doi.org/10.18752/sjie.v10i1.15310.


TRIKONOMIKA ◽  
2019 ◽  
Vol 18 (1) ◽  
pp. 18
Author(s):  
Istiqomah Istiqomah ◽  
Arif Andri Wibowo ◽  
Evi Yunianti ◽  
Diah Setyorini Gunawan

Regional income equality has been a major development goal. However, GRDP in Western Indonesia is higher than that in Eastern Indonesia. Therefore, the government should encourage development and increase economic growth in Eastern Indonesia. There are inequalities between those provinces. The purpose of this research is to analyze the effect of labor, domestic investment, foreign direct investment, and government expenditure on GRDP in Eastern Indonesia Region. This study employed regression on panel data of 12 provinces from 2011 to 2016. The results found that labor, domestic investment, foreign direct investment, and government expenditure have positive and significant effect to GRDP. The results imply that all of the independent variables shuld be increas to promote economic growth in The Eastern Indonesia Region.


2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Desmayani Siregar

The aim of this research is to examine the effect of intra- regional trade in ASEAN, extra regional ASEAN, foreign direct investment, inflation and population to the economic growth of ASEAN member countries. The method of analysis which is used in the research is regression panel with Eviews software 7. The population which is used in this research is ten ASEAN member countries with study period from year 2010 till year 2014. The result showed that, intra- regional trade in ASEAN, extra regional ASEAN, foreign direct investment, inflation and total population simultaneously has a significant effect on the economic growth of ASEAN member countries. Partially, intra-regional ASEAN trade and the number of population have negative effect on the economic growth of ASEAN member countries. While intra- regional trade, foreign direct investment and inflation partially have positive effect on the economic growth on ASEAN member countries.


2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Suhaily Maizan Abdul Manaf ◽  
Shuhada Mohamed Hamidi ◽  
Nur Shafini Mohd Said ◽  
Siti Rapidah Omar Ali ◽  
Nur Dalila Adenan

Economic performance of a country is mostly determined by the growth and any other internal and external factors. In this study, researchers purposely focused on Malaysian market by examining the relationship between export, inflation rate, government expenditure and foreign direct investment towards economic growth in Malaysia by applying the yearly data of 47 years from 1970 to 2016 using descriptive statistics, regression model and correlation method analysis. By applying Ordinary Least Square (OLS) method, the result suggests that export, government expenditure and foreign direct investment are positively and significantly correlated with the economic growth. However, inflation rate has negative and insignificant relationship with the economic growth. The outcome of the study is suggested to be useful in providing the future research direction towards the economic growth in Malaysia. Keywords: economic growth; export; inflation rate; government expenditure


2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.


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