The Impact of Foreign Direct Investment on Economic Growth in Indonesia
Journal Title: Journal of Economics, Finance and Management Studies - Year 2025, Vol 8, Issue 06
Abstract
Indonesia is one of the developing countries that focuses on national economic development and economic growth. High economic growth can be an indicator that the country is successfully steering the wheel of development, which can ultimately be fully harnessed to improve the welfare of its people. Economic growth is one of the most important things in Indonesia, so it is important to understand the factors that affect Indonesia's economic growth. This study uses panel data from the Central Bureau of Statistics of the Republic of Indonesia and the Ministry of Development and National Planning of the Republic of Indonesia for regression analysis from 2017 to 2021. The research results show that: (1) Foreign direct investment has a positive impact on Indonesia's economic growth, but it is not significant during the sample period; (2) Indonesia's imports and exports will increase significantly from 2017 to 2021; (3) Imports will have a positive and significant impact on Indonesia's economic growth; (4) Exports will have a positive and significant impact on Indonesia's economic growth; (5) Labor force positive and significant impact on Indonesian economic growth. Finally, based on the above conclusions, the corresponding countermeasures and suggestions are put forward from two aspects of the government and enterprises.
Authors and Affiliations
Paramaputra Rafi Zahran , Veraldo Novaren , Pamungkas Muhamad Wahyu Adji,
Keywords
Related Articles
- EP ID EP769466
- DOI 10.47191/jefms/v8-i6-48
- Views 2
- Downloads 0
Mechanisms for Developing and Enhancing the Production of High Value-Added Innovative Products in Uzbekistan
This study explores the mechanisms for developing and enhancing the production of high value-added innovative products in Uzbekistan. The analysis focuses on recent government initiatives such as the establishment of Spe...
The Cultural-Cognitive-Normative (CCN) Framework: Understanding Organ Donation Intentions in Vietnam
This study introduces the Cultural-Cognitive-Normative (CCN) framework, a novel theoretical integration that explains organ donation intentions within culturally sensitive contexts. We examine how cultural values moderat...
Assessing Barriers to Implementation of Employee Code of Conduct: A Case of Lusaka's Public Schools
This study assessed the role and significance of employee code of conduct in steering ethical behavior and improving organizational outcomes, particularly in public educational institutions. The questions of the study we...
The Influence of Work Motivation, Work Discipline and Employee Welfare on Organizational Performance
The performance of a company is intricately linked to the collective efforts of its individuals, who are driven by motivation, discipline, and the well-being they experience. This study delves deeply into the complex int...
Taxpayer Compliance in Paying Motor Vehicle Tax at Pesawaran Regency
The results of this study aim to determine tax compliance behavior using the theory of planned behavior towards motor vehicle taxes in the Pesawaran Regency. Furthermore, several factors are thought to influence tax comp...