Analysis Of Indonesia Exports To Asean Countries And Their Effect On Economic Growth In The MEA Era
Debby Ch. Rotinsulu (a*), Jacline I. Sumual (a*), Robby Joan Kumaat (a)
Faculty of Economy and Business, Universitas Sam Ratulangi, Manado, Indonesia *debby-rotinsulut[at]unsrat.ac.id; sumualjacline[at]gmail.com
Abstract
Foreign trade is one important aspect in the economy of each country. At present there is no country that does not have relations with foreign parties. The economy of each country is practically open and intertwined with the international world (Dumairy, 1997: 178). A countrys exports play an important role in promoting economic growth. Exports can supply the state budget through income and foreign currencies which can be used to improve infrastructure and create an attractive investment climate (Mohsen, 2015). In addition, exports also have an important role in developing domestic product markets. The role is to increase competition that drives a country to increase production and use new technology in its production process. Economic growth shows the extent to which economic activity will generate additional community income in a given period. The economy is considered to have experienced growth if all real service fees for the use of production factors in a particular year are greater than the real income of the community in the previous year. Kuznets (Jhingan, 2007) said that economic growth is an increase in capacity in the long term of a country to provide economic goods to the population. Economic growth means the development of activities in the economy which causes the goods and services produced to increase and the prosperity of the community to increase. Economic growth is also the rate of increase in real GDP or GNP in a given year when compared to the following year. The purpose of this study is to see how the influence of exports to ASEAN countries on Indonesias economic growth with the research method is regression analysis. The results of the study found that Indonesias exports to ASEAN countries had a positive and significant effect on Indonesias economic growth.
Keywords: Exports; Economic Growth
Topic: Strategy and Business Economics