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

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.