scholarly journals Does the Covid-19 Outbreak Impacts On Economic Growth? An Evidence from Indonesia

2021 ◽  
Vol 2 (3) ◽  
pp. 88-95
Author(s):  
Hilda Aprina ◽  
M. Sabri Abd. Majid ◽  
Vivi Silvia

This study aims to analyze the effectS of the COVID-19 pandemic, labor, domestic direct investment (DDI), AND foreign direct investment (FDI) on economic growth in Indonesia. The type of data used in this study is panel data, which is a combination of cross-section and THE time series data (Silvia, 2020). The cross-section data involves 34 provinces and time-series data covers the period from the first quarter of 2018 to the second quarter of 2021. The result found out that the regression coefficient of labor has a positive and significant effect at the 5 percent level, which means that if the number of workers increases by 1 percent, economic growth will increase by 0.03 percent. Furthermore, the FDI variable also has a significant and positive effect on economic growth in Indonesia. We can see in table 3.2 that the FDI variable is significant at the 5 percent level with a regression coefficient of 0.012, this means that an increase in FDI by 1 percent will accelerate economic growth by 0.012 percent. From the results of data processing obtained by the author, it can be seen that the DDI variable has a positive but not significant effect on economic growth in Indonesia, this can be seen from the p-value which is greater than 5 percent. The regression coefficient of -0.001 proves that the COVID-19 pandemic has a negative impact on economic growth in Indonesia. When the COVID-19 pandemic reached the territory of Indonesia, economic growth slowed by 0.001 percent.

2017 ◽  
Vol 13 (1) ◽  
pp. 65-74
Author(s):  
Saif Alhakimi

This research paper aims to empirically analyze the impact of FDI on the long-term economic growth of Egypt. An empirical model was developed to explain the aggregate output, including total labor force, capital stock, foreign direct investment, government expenditure, and the real exchange rate. Annual time-series data from 1990–2013 were then used to estimate the model. Prior to calculating this estimation, the properties of the time series were diagnosed, and an error-correction model was developed and assessed. The overall results suggest that foreign direct investment makes a positive, yet weak and insignificant, contribution to the long-term economic growth of Egypt. This finding warrants further investigation to explore the possible reasons behind it, such as the degree of spillover that FDI has on economic growth and its impact on employment in areas like job creation, wage structure, research, and development.


Author(s):  
Dat Tho Tran ◽  
Van Thi Cam Nguyen

This study aims at investigating the impact of globalization on economic growth in the case of Vietnam. Empirical analysis is done by using time series data for the period from 1995 to 2014. The paper tested the stationary cointegration of time series data and utilized the error correction modeling technique to determine the short run relationships among economic growth, globalization, foreign direct investment, balance of trade and exchange rate variables. Then, the long run relationship between economic growth and the variables representing economic integration were estimated by ordinary least square. The results show that globalization, measured by the KOF index, promotes economic growth and Vietnam has gained from integrating into the global economy. The overall index of globalization had positively and significantly impacted the economic growth in Vietnam. The results also indicated that economic globalization had a significantly positive effect on economic growth in the period examined. The study further revealed that foreign direct investment and the exchange rate affect economic growth positively whereas balance of trade affects economic growth negatively.


2017 ◽  
Vol 2 (1) ◽  
pp. 54-68
Author(s):  
Firdaus Jufrida ◽  
Mohd. Nur Syechalad ◽  
Muhammad Nasir

This study aims to analyze the effect of foreign direct investment (FDI) and domestic investment on Indonesian economic growth. The data used was time series data on Indonesian economy from year. Furthermore, the analysis was conducted with quantitative method using Ordinary Least Square (OLS) regression method with multiple regression model. The result shows that Foreign Direct Investment (FDI) has a positive but not significantly affected Indonesia economic growth, while Domestic Investment has a positive significant effect on Indonesian economic growth. Based on the research results, it is recommended that the Indonesia government has to maintain the stability of economic variables that can stimulate foreign and domestic investment in order to achieve sustainable economic growth.Penelitian ini bertujuan untuk menganalisis pengaruh investasi asing langsung (FDI) dan investasi domestik pada pertumbuhan ekonomi Indonesia. Data yang digunakan adalah data time series pada perekonomian Indonesia dari tahun. Selanjutnya, analisis dilakukan dengan metode kuantitatif dengan menggunakan metode regresi Ordinary Least Square (OLS) dengan model regresi berganda. Hasil penelitian menunjukkan bahwa Foreign Direct Investment (FDI) memiliki positif tetapi tidak pertumbuhan ekonomi secara signifikan mempengaruhi Indonesia, sedangkan PMDN memiliki efek positif yang signifikan terhadap pertumbuhan ekonomi Indonesia. Berdasarkan hasil penelitian, disarankan agar pemerintah Indonesia harus menjaga stabilitas variabel ekonomi yang dapat merangsang investasi asing dan domestik dalam rangka mencapai pertumbuhan ekonomi yang berkelanjutan.


Author(s):  
Ifqi Khairunnisa ◽  
Sri Hartojo ◽  
Yeti Lis Purnamadewi

National development goals are not merely to create growth in Gross Domestic Product (GDP) and high per capita income. But more than that, it expected to alleviate poverty levels and income inequality in every class of society. Foreign Direct Investment (FDI) one of the most important investment to accelerate economic growth. The advantages of FDI inflow for host country are: capital accumulation; job creation; transfer of technology and management; and access to international market networks. This study aims to determine the relationship between FDI, economic growth, human capital, and community welfare. The quantitative analysis method in this study uses a simultaneous equation system model with six structural equations: domestic investment, economic growth, public consumption, education, health, unemployment and poverty. In addition, there are 3 identity equations: investment equation, the labour force, and economic growth. All data is a combination of cross-sectional and time-series data. The cross-section data used are 33 provinces in Indonesia and the time series data for the period 2010 to 2019.


Author(s):  
Sadia Bibi ◽  
Syed Tauqeer Ahmad ◽  
Hina Rashid

This study focuses on empirical analysis to find out the role of trade openness, inflation, imports, exports, real exchange rate and foreign direct investment in enhancing economic growth in Pakistan. The analysis based on time series data for the period 1980 to 2011. This paper uses ADF; PP and DF-GLS tests to find out stationarity of the variables and Co-integration and DOLS (Dynamic Ordinary Least Square) techniques have been used for the estimation. Co integration results indicated the long run relationship among the variables. However, negative impact of trade openness can be overcome by producing import substitutes and creating conditions for trade surplus. Furthermore, foreign direct investment and trade are considered vital elements that improve the influence of economic growth.  


2021 ◽  
Vol 5 (2) ◽  
pp. 93-110
Author(s):  
Dwi Desnasari

This study aims to analyze the effect of labor productivity, income inequality, and investment oneconomic growth in Indonesia. The data used is panel data consisting of time series data for 2009 -2018 and a cross section of 34 provinces in Indonesia. The variables used are economic growth,labor productivity, income inequality, and investment. The analysis tool used is panel dataregression, namely the Fixed Effect Model (FEM). The results showed that labor productivity had apositive and significant effect on economic growth, income inequality had a negative andsignificant effect, while investment had no effect on economic growth in 34 provinces in 2009-2018.


2020 ◽  
Vol 1 ◽  
pp. 104-113
Author(s):  
Keshar Bahadur Kunwar

This study employed bounds test based cointegration technique using annual time series data from the period 1990/91 to 2015/16 for exploring relationship between RGDP and FDI in Nepal. This paper examines the effect of FDI on RGDP is insignificant at five percent level of significance. The coefficient (0.35) of (FDI) shows that one percent increase in FDI leads to over 0.35 percent increase RGDP in the long-run. There is no causality between foreign direct investment and economic growth.


2017 ◽  
Vol 6 (2) ◽  
pp. 97 ◽  
Author(s):  
Yetty Agustini ◽  
Erni Panca Kurniasih

The purpose of the research is to know the influence of domestic investment, foreign investment, and the absorption of labor toward the local economic growth and the amount of people who live in poverty in regency/city in West Kalimantan. This study tested 6 (six) years data, from 2008 to 2013 using panel data in the form of time series data (2008-2013) and cross section (10 countries/ cities) in the West Kalimantan province. Data were analyzed using regression analysis via Eviews 6.0. The results of the research showed that: 1) Domestic Investment influnces positively and significant toward the growth of local economic in regency/city in West Kalimantan. 2) Foreign Investment influences positively and significant toward the growth of local economic in regency/city in West Kalimantan. 3) The Absorption of labor influences positively and is significant toward the amount of local economic growth in regency/city in West Kalimantan. 4) Economic growth influences negatively and significant toward the amount of people who live in poverty in regency/city in West Kalimantan


2016 ◽  
Vol 55 (2) ◽  
pp. 101-114
Author(s):  
Shoukat Ali ◽  
M.Athar Hussain ◽  
Aqsa Zulqaif

This study aims to analyze the impact of Foreign Direct Investment(FDI), external debt and population growth on economic progress of Pakistan by using time series data from 1980 to 2014. It analyzes the correlation between Gross Domestic Product(GDP),FDI, external debt and population growth. Augmented Dickey Fuller test has been used to check stationarity in time series data. To evaluate the empirical results multiple regression method is used. GDP has been used as a dependent variable while FDI, external debt and population as independent variables. Findings of this paper show the positive and significant impact of FDI, and population growth on GDP but external debt has negative impact on GDP.


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