ANALYSIS OF THE EFFECT OF EXCHANGE RATE, INTEREST RATE AND FOREIGN INVESTMENT ON ECONOMIC GROWTH IN INDONESIA

Authors

  • Putra Ghena Rizki Darise Student of Faculty of Economics, Gorontalo State University
  • Muhammad Amir Arham Lecturer in Faculty of Economics, Gorontalo State University
  • Sri Endang Saleh Lecturer in Faculty of Economics, Gorontalo State University
  • Sri Indriyani S. Dai Lecturer in Faculty of Economics, Gorontalo State University

Keywords:

Economic Growth, Exchange Rate, Interest Rate

Abstract

This study aims to determine the effect of exchange rates, interest rates and foreign investment on economic growth and discuss it. The data used in this study are secondary data for 1992-2021 sourced from the National Statistics Agency and the World Bank. The analysis model in this study uses Multiple Linear Regression with the Error Correction Model (ECM) analysis model. The analysis shows that in the long run interest rates and foreign investment have a positive and significant effect on economic growth except the exchange rate. It is concluded that the variables of exchange rate, interest rate and foreign investment are the main variables that affect economic growth in the long and short term.

References

Indriyani, S. (2016). “Analisis Pengaruh Inflasi Dan Suku Bunga Terhadap Pertumbuhan Ekonomi di Indonesia Tahun 2005 – 2015.” Jurnal Manajemen Bisnis Krisnadwipayana, 4(2).

Salebu, J. B. (2014). “The Impact of Foreign Direct Investment on Indonesian Economic Growth: Panel Data analysis For The Period 1994-2013.” MPRA Paper, 72830.

Sugiyono, P. D. (2013). “Metode Penelitian Kuantitatif, Kualitatif, Dan R&D.”

Wahyudi, E. (2014). “Pengaruh Suku Bunga Bank Indonesia (Bi Rate) Dan Produk Domestik Bruto (PDB) Terhadap Laju Inflasi Di Indonesia.” Jurnal Ilmiah.

Warjiyo, P., & Solikin. (2020). “Kebijakan Moneter di Indonesia.” In Google Buku (Issue 6).

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Published

2023-10-10

How to Cite

Putra Ghena Rizki Darise, Muhammad Amir Arham, Sri Endang Saleh, & Sri Indriyani S. Dai. (2023). ANALYSIS OF THE EFFECT OF EXCHANGE RATE, INTEREST RATE AND FOREIGN INVESTMENT ON ECONOMIC GROWTH IN INDONESIA. European Journal of Research Development and Sustainability, 4(10), 89-97. Retrieved from https://scholarzest.com/index.php/ejrds/article/view/3937

Issue

Vol. 4 No. 10 (2023): EJRDS

Section

Articles

License

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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