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

Authors

  • Alfred Leonard  Department of Economics, Faculty of Management Economics, Bogor Agricultural University, Indonesia
  • Tanti Novianti  Department of Economics, Faculty of Management Economics, Bogor Agricultural University, Indonesia
  • Sri Mulatsih  Department of Economics, Faculty of Management Economics, Bogor Agricultural University, Indonesia

DOI:

https://doi.org/10.32628/IJSRSET21853

Keywords:

Manufacturing Industry Exports, Investment, Economic Growth

Abstract

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.

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2021-10-30

Issue

Volume 8, Issue 5, September-October-2021

Section

Research Articles

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How to Cite

[1]
Alfred Leonard, Tanti Novianti, Sri Mulatsih "Analysis of the Impact of Exports and Investment on Indonesian Economic Growth" International Journal of Scientific Research in Science, Engineering and Technology (IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 8, Issue 5, pp.92-101, September-October-2021. Available at doi : https://doi.org/10.32628/IJSRSET21853