Analysis of the Influence of Economic Openness to Indonesia Growth
Zandro Silaban1, Indra Maipita2, Fitrawaty3
Departement of Economics, Faculty of Economic, State University of Medan, Medan 20221, Indonesia
Abstract
Abstract-This study aims to explain economic growth in Indonesia. The variables that affect rate of economic growth are government spending, domestic inflation difference, difference of BI Rate and The Fed Rate, money supply, exchange rate, unemployment. In this study, the data used are secondary data published by the Central Bureau of Statistic and bank Indonesia. The data are annual data from 1991 to 2018. The analytical tools used are Ordinary Least Square regression. The results showed that government spending, exchange rates and unemployment had no significant effect on economic growth in Indonesia, but the difference in domestic inflation & foreign inflation, the difference in domestic interest rates & Fed rate, Money supply significant economic growth in Indonesia.
Keywords: Government Spending; Domestic Inflation Difference; Difference of BI Rate and The Fed Rate; Money Supply; Exchange Rate; Unemployment, Economic Growth
Topic: Economics, Business and Management Education