Vol. 1 No. 2 (2024)
Open Access
Peer Reviewed

Do domestic direct investment, foreign direct investment, exports, and government spending matter for Indonesia's economic growth?

Authors

Bella Nova Prastika , Martahadi Mardhani , Miswar

DOI:

10.62941/irefi.v1i2.15
Received: Feb 11, 2024
Published: Oct 31, 2024

Abstract

This research aims to examine the influence of domestic direct investment (DDI), foreign direct investment (FDI), exports, and government spending on economic growth in Indonesia from 2006 to 2021, both simultaneously and partially. Time series data are used, with multiple linear regression employed for analysis. The findings indicate that DDI and government spending significantly affect economic growth, while FDI also has a significant impact. In contrast, exports have no significant effect on economic growth. These results highlight the importance of domestic investment and government expenditure in driving economic growth in Indonesia.

Keywords:

domestic direct investment economic growth export foreign direct investment government spending

Author Biographies

Bella Nova Prastika, Department of Development Economics, Faculty of Economics, Universitas Samudra, Langsa, Indonesia

Martahadi Mardhani, Faculty of Economics, Universitas Samudra

Miswar, Department of Development Economics, Faculty of Economics, Universitas Samudra, Langsa, Indonesia

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How to Cite

Prastika, B. N., Mardhani, M., & Miswar. (2024). Do domestic direct investment, foreign direct investment, exports, and government spending matter for Indonesia’s economic growth?. International Review of Economics and Financial Issues, 1(2). https://doi.org/10.62941/irefi.v1i2.15