scholarly journals Analysis of the Impact of Exports and Investment on Indonesian Economic Growth

2021 ◽  
pp. 92-101
Author(s):  
Alfred Leonard ◽  
Tanti Novianti ◽  
Sri Mulatsih
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Manufacturing Industry ◽  
Negative Influence ◽  
Domestic Investment ◽  
Average Share ◽  
Negative Effect ◽  
The Impact

The average share of net exports to Indonesia's economic growth was only 1.01% in the last 30 years. The contribution and important role of manufacturing industry exports in total national exports ranged from 73.62 – 80.91% with an average of 78.30% in the last 10 years (2010 – 2020). This study aims to analyze the impact of manufacturing industry exports and investment on economic growth through the export-led growth hypothesis. The results show that there is a long-term relationship between foreign investment, domestic investment, employment, and manufacturing industry exports to GDP. Domestic investment and manufacturing exports have a positive effect on GDP, on the other hand, foreign investment and employment have a negative effect. An indication of the negative influence of FDI in Indonesia is due to the low rate of economic return. In addition, the negative effect of labor absorption is indicated by the unavailability of adequate employment opportunities.

scholarly journals Measuring the Effect of the Internet on Economic Growth: The Case of Saudi Arabia

2020 ◽  
Vol 12 (12) ◽  
pp. 61
Author(s):  
Hisham J. Bardesi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Saudi Arabia ◽  
Internet Access ◽  
Ordinary Least Squares ◽  
The Internet ◽  
Macroeconomic Performance ◽  
The Impact

The purpose of this study is to examine and assess the impact of the Internet on economic growth in Saudi Arabia. Various studies show that there is a relationship between the growth rate of GDP and the Internet, as estimated by Internet user numbers. In this paper, the ordinary least squares (OLS) model is utilized to study the economic impact of Internet Access from 1994 to 2018, which has had a profound effect on the market structure of many sectors and Saudi’s global macroeconomic performance. The study constructs a model to investigate any significant impact of the Internet on the Saudi economy. Finally, this paper suggests that an understanding of the role of the Internet is essential for policymakers who plan to promote new forms of economic growth in the future. To take a long-term view implies working on technologies that could improve the economy and people’s lives by creating a technological ecosystem in and around Saudi Arabia, along with other major economies.

scholarly journals Export Earnings, Capital Instability and Economic Growth in South Asia

2003 ◽  
Vol 8 (1) ◽  
pp. 65-89
Author(s):  
Muhammad Aslam Chaudhary ◽  
Amjad Naveed
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Foreign Capital ◽  
Developed Countries ◽  
Export Diversification ◽  
Asian Countries ◽  
The Impact ◽  
The Relationship

During the last two decades the role of international trade and flow of foreign capital have received considerable attention in the literature. Various studies have examined the impact of export instability and capital instability on economic growth in less developed countries.1 Empirical evidence supports the hypothesis of a deleterious impact of export instability on economic growth. However, some studies also indicated that the relationship was unstable but positive with economic growth.2 Yet there are no systematic empirical investigations into the implied links between export diversification and long-term economic growth, particularly in the case of South Asian countries. The major concern regarding export instability is that it retards economic growth.

Role of External and Domestic Demand in Economic Growth: A Study of BRICS Countries

2019 ◽  
Vol 21 (2) ◽  
pp. 547-566 ◽  
Author(s):  
Bibhuti Ranjan Mishra
Keyword(s):  
Economic Growth ◽  
Developed Countries ◽  
Domestic Demand ◽  
Impulse Response Functions ◽  
Domestic Investment ◽  
Causality Analysis ◽  
Brics Countries ◽  
External Demand ◽  
The Impact

Despite the global downturn since 2008, the growth in BRICS countries as a group is least hampered as compared to the growth in the world, in general, and developed countries, in particular. Is it due to the strong domestic demand factors or external factors is an empirical question to be answered. Further, some economists are promulgating for a new development strategy of domestic demand-led growth. Hence, this article tries to examine the role of domestic and external demand to growth in BRICS countries. Domestic investment is taken to explore the impact of domestic demand on growth, while export and import variables are used to investigate the role of external demand in economic growth. To cater to the objective, causality analysis is done among exports, imports, domestic investment and economic growth using the vector auto regression analysis. Generalized impulse response functions are plotted to get an insight of dynamic interrelationships among these variables. The results are country-specific and mixed evidence of export-led and domestic demand-led growth is found depending on the individual countries of BRICS.

scholarly journals The Gap in Economic Growth from Foreign Investment and Domestic Investment across Provinces in Indonesia

2020 ◽  
Vol 1 (1) ◽  
pp. 34-38
Author(s):  
Asnawi Asnawi ◽  
Irfan Irfan ◽  
M. Fathul Chairi Ramadhani
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Time Series Data ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Series Data ◽  
Domestic Investment ◽  
Effect Model ◽  
Negative Effect

The study aims to determine the effect of Foreign Investment (FDI) and Domestic Investment (PMDN) on Cross-Province Economic Growth in Indonesia in 2014-2018. This study uses secondary data with Panel and Poled data consisting of 34 provinces in Indonesia, and use the 5 years time-series data during 2014-2018. The analytical method used is the panel regression analysis method with the Fixed Effect model and poled model. The results showed that foreign investment and domestic investment had a positive and significant effect on economic growth across provinces in Indonesia. Furthermore, the results of the study show that foreign investment and domestic investment have a significant and positive effect on economic growth in 8 provinces in Indonesia, and the foreign investment has a significant and positive influence on economic growth in 9 Provinces in Indonesia. However, only North Maluku, where foreign investment has a significant and negative effect on economic growth, and domestic investment significantly and positively affects economic growth in 6 provinces in Indonesia.

scholarly journals Does Economic Growth and Inflation Impact Consumer Confidence during a Pandemic? An Empirical Analysis in EU Countries

2020 ◽  
Vol 3 (1) ◽  
pp. 5-13
Author(s):  
Larissa Bătrâncea
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Negative Influence ◽  
Negative Consequences ◽  
Monetary Policies ◽  
Eu Countries ◽  
Consumer Prices ◽  
Inflation Rates ◽  
Negative Effect ◽  
The Impact

Abstract The study investigates the capacity of European Union member states to face the effects of the economic crisis caused by the COVID-19 pandemic. Namely, by means of a panel data analysis, the study reports on the impact of economic growth (proxied by gross domestic product) and inflation rates (proxied by harmonized indices of consumer prices) on the overall confidence indicator corresponding to 27 EU countries for the period fourth quarter 2019–third quarter 2020. Results showed that inflation had a negative influence on the confidence indicator during the pandemic crisis, while economic growth had no impact. The negative effect triggered by inflation uncovered the impact of monetary policies and fiscal policies on the staggering level of public debt. The study emphasizes that inflation plays a significant role in the market economy, reason for which governments should monitor this factor when trying to stimulate the economy and set appropriate policies for eliminating negative consequences of potential future recession periods.

scholarly journals An Empirical Research on the Structure of Public Expenditure and Economic Growth—Evidence from China

2016 ◽  
Vol 8 (3) ◽  
pp. 85
Author(s):  
Li Yang Zi
Keyword(s):  
Economic Growth ◽  
Public Expenditure ◽  
Chinese Government ◽  
Social Expenditure ◽  
Output Elasticity ◽  
Negative Effect ◽  
Object Of Study ◽  
The Impact ◽  
Expenditure Structure

This paper takes the relationship between public expenditure structure and economic growth as the object of study. By using evidence from China, it analyzes how the Chinese Government should promote economic growth by the optimization of public expenditure structure when facing with a decline in the growth of fiscal revenue. The main conclusions of the paper are as follows: The impact of public expenditure structure on economic growth not only depends on the output elasticity of the item of expenditure, but also on its initial share. When the initial share is oversized, it will make an item of expenditure which appears to be productive become non-productive. For China, the proportions of economic construction expenditure and administrative expenditure have a significant negative effect on long-term economic growth; the social expenditure on culture and education has a significant positive effect on long-term economic growth.

The relationships between foreign direct investment, domestic savings, domestic investment, and economic growth: The case of Sub-Saharan Africa

2016 ◽  
Vol 38 (2) ◽  
pp. 193-217
Author(s):  
Nurudeen Abu ◽  
Mohd Zaini Abd Karim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Sub Saharan Africa ◽  
Domestic Investment ◽  
Long Run ◽  
Domestic Savings ◽  
Sub Saharan ◽  
The Impact

Despite the large body of research on foreign direct investment, domestic savings, domestic investment and economic growth, little has been done to investigate the relationships among them. This paper examines the relationships among foreign direct investment, domestic savings, domestic investment, and economic growth in 16 Sub-Saharan African (SSA) countries from 1981 to 2011, using various techniques. The results of VAR estimation and Granger causality tests demonstrate that there is a unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a bidirectional causality between growth and domestic investment as well as savings and domestic investment. The results of the variance decomposition analysis reveal that foreign investment exerts more influence on growth. Savings are more important in explaining domestic investment, growth is more important in explaining foreign investment, and domestic investment is more important in explaining savings. Based on the results of the impulse response analysis, there is a positive unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a positive bidirectional causality between savings and domestic investment, both in the short and long-run. Although there is feedback causality between domestic investment and growth, the impact from investment is negative in the short-run and positive in the long-run. Thus, policies that encourage foreign investment and savings are required to boost domestic investment and promote growth, and policies that raise domestic investment will lead to higher savings and growth in SSA.

scholarly journals Role of Political Instability in Attracting FDI Inflow to Pakistan

2021 ◽  
Vol 3 (1) ◽  
pp. 41-49
Author(s):  
Dil Jan ◽  
Muhammad Sibt e Ali ◽  
Muhammad Taqi ◽  
Sabiha Parveen
Keyword(s):  
Design Methodology ◽  
Domestic Investment ◽  
Inverse Relation ◽  
Doing Business ◽  
Long Run ◽  
Short Run ◽  
Ease Of Doing Business ◽  
The Impact

Purpose:  The reason of this study is to recognize the impact of key determinants of overseas direct asset in case of Pakistan, based on annual information covering the period of 1981-2018. Design/Methodology/Approach: After checking for still of the sequence, the technique of ARDL is used for estimation of long run parameters estimates and error alteration instrument for short run dynamics. Findings: The results of the study indicate that politically stable environment and long term policies are necessary to attract foreign investors. furthermore, investment profile of any government also matter for direct asset in the country as the study conclusions reveal that marketplace size as well as domestic investment are positively related to foreign direct investment while taxes have negative association with overseas straight investment in the case of Pakistan. Implications/Originality/Value: The most important factor for FDI inflow to Pakistan is interest rate or ease of doing business which has negative sign means inverse relation exists between the two variables.

scholarly journals IMPACT OF INNOVATIONS UPON ECONOMIC GROWTH DURING RECESSION

2015 ◽  
Vol 21 (4) ◽  
pp. 626-642 ◽  
Author(s):  
Vytautas SNIESKA ◽  
Gitana VALODKIENE
Keyword(s):  
Economic Growth ◽  
Economic Recession ◽  
Household Consumption ◽  
Gdp Growth ◽  
Consumption Expenditure ◽  
Manufacturing Enterprises ◽  
Main Engine ◽  
The Impact

The role of the factors influencing economic growth during economic recessions and the role of these factors in separate economic phases are analysed. The purpose of the research is to assess the impact of innovations on economic growth during recession. The analysis of the situation in manufacturing sectors of Lithuania during economic recession in 2007 to 2009 has revealed several characteristics of innovations for this period due to which Lithuanian manufacturing enterprises managed to successfully function and remain competitive. The influence of household consumption expenditure on the growth of GDP in Lithuania is described by the function close to the linear, so we see a direct relation between these two variables. The influence of export on GDP is described by a convex function which has showed the declining influence of export on the GDP growth in the long-term perspective. Thus, contrary to a rather popular belief in transition countries, the main engine of growth in the long-term is not export. The long-term GDP growth is impossible without stimulating the growth in household consumption expenditure.

scholarly journals DOES SUKUK, DOMESTIC INVESTMENT, FOREIGN INVESTMENT, AND INFLATION CONTRIBUTE TO ECONOMIC GROWTH IN INDONESIA?

2020 ◽  
Vol 7 (12) ◽  
pp. 2375
Author(s):  
Laela Setianingsih ◽  
Emy Widyastuti
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Positive Contribution ◽  
Domestic Investment ◽  
Short Term ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Short And Long Term

ABSTRAKIndikator yang menentukan keberhasilan pembangunan ekonomi adalah pertumbuhan ekonomi. Kemajuan dan kesejahteraan suatu negara dapat dilihat melalui pertumbuhan ekonominya. Pertumbuhan ekonomi Indonesia berfluktuasi setiap tahun dan dipengaruhi oleh banyak faktor. Penelitian ini bertujuan untuk mengetahui kontribusi sukuk jangka pendek dan jangka panjang, penanaman modal dalam negeri, penanaman modal asing, dan inflasi terhadap pertumbuhan ekonomi di Indonesia dari tahun 2011 hingga 2019. Metode yang digunakan dalam penelitian ini adalah Vector Error Correction Model (VECM). Data yang digunakan dalam penelitian ini adalah data sekunder time series dengan periode penelitian triwulanan dari tahun 2011 hingga 2019. Hasil pengujian menunjukkan bahwa variabel sukuk memiliki kontribusi negatif yang tidak signifikan terhadap pertumbuhan ekonomi dalam jangka pendek dan dalam jangka Panjang, sukuk berpengaruh positif signifikan terhadap pertumbuhan ekonomi. Variabel investasi dalam negeri dalam jangka pendek dan jangka panjang memberikan kontribusi positif terhadap pertumbuhan ekonomi. Variabel investasi dalam negeri jangka pendek dan jangka panjang memberikan kontribusi positif yang tidak signifikan terhadap pertumbuhan ekonomi. Dan variabel inflasi memiliki kontribusi yang negatif dan tidak signifikan terhadap pertumbuhan ekonomi dalam jangka pendek dan jangka panjang.Kata Kunci: Sukuk, Penanaman Modal Dalam Negeri, Penanaman Modal Asing, Inflasi, Pertumbuhan Ekonomi. ABSTRACTThe indicator for determining the success of economic development is economic growth. The progress and welfare of a country can be seen through its economic growth. Indonesia’s economic growth fluctuates every year and is influenced by many factors. This study aims to determine the short-term and long-term contributions of Sukuk, domestic investment, foreign investment, and inflation to economic growth in Indonesia from 2011 to 2019. This method used in this research is the Vector Error Correction Model (VECM). The data used in this study are secondary time series data with a quarterly research period from 2011 to 2019. The test results show that the sukuk variable has an insignificant negative contribution to economic growth in the short term and the long term sukuk has a significant positive contribution to economic growth. Domestic investment variables in the short and long term contribute positively to economic growth. The short-term and long-term domestic investment variables have an insignificant positive contribution to economic growth. And the inflation variable has a negative and insignificant contribution to economic growth in the short and long term. Keywords: Sukuk, Domestic Investment, Foreign Investment, Inflation, Economic Growth.

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