The purpose of this research is to examine the short- and long-term effects of foreign investment and trade on economic development in Indonesia. This analysis makes use of yearly time series data spanning the years 1985 to 2020. This data is derived from secondary sources such as the World Bank. In this research, the dependent variable is the national gross domestic product, which serves as a proxy for economic growth. In this research, the independent variables are trade (T) and foreign direct investment (FDI), which serve as indices of economic activity. The findings of the research utilizing the ARDL technique indicate that although two factors, trade, and foreign direct investment, have little influence on economic development, in the long run, they do have a considerable effect in the short run. According to the ARDL results, trade and foreign direct investment are critical for Indonesia's economic growth, but in Indonesia, a trade sector dominated by imports causes this variable to have a significant negative relationship with economic growth, implying that the greater the proportion of trade, the lower economic growth in Indonesia.
This study attempts to investigate the potential for public debt traps in countries in Asia, especially Southeast Asia, Sri Lanka, and Timor Leste. This study employs a vector panel model using secondary data from annual Reports in a quantitative manner from the world bank. This study investigates samples from 12 Asian countries, namely Sri Lanka, Timor Leste, Indonesia, Malaysia, Singapore, Philippines, Thailand, Brunei Darussalam, Vietnam, Laos, Myanmar, and Cambodia. we use an annual research time period from 1990 to 2020. We found that economic growth, consumption growth, government spending, total debt arising from bond sales, and interest rates in Sri Lanka, Timor Leste, Indonesia, Malaysia, Singapore, Philippines, Thailand, Brunei Darussalam, Vietnam, Laos, Myanmar, and Cambodia influence each other significantly. This shows that public debt has an impact on almost all lines of the economic sector. When the public debt is not balanced by the real sector, which is represented by economic growth, consumption growth, and government spending, it will become a threat to the economy when public debt payments are due and state revenues are insufficient to make payments and the real sector is not strong enough to support cash outflows. As a result of the payment of a public debt, there is the potential for a crisis as well as interest rates which have an impact on public debt, where the higher the interest rate, the more burdensome the real sector will be in providing compensation for loans received at the specified interest rate.
This study investigates economic growth, taxes and foreign direct investment. This study investigates data from the 2000 to 2020 starting point to generate “autoregressive vectors” that can be used to determine relationships between variables. This model is used to analyze foreign direct investment, economic growth and taxes in Indonesia using secondary data from the World Bank. We find that The role of taxes in improving economic stability in Indonesia is very important and has a fairly high interrelationship, It is also stated that Economic Growth has an important relationship with Taxes, when Economic Growth increases, Taxes will also increase, not only Taxes, Foreign Direct Investment also increases when Economic Growth grows, therefore Indonesia needs to pay attention to economic growth because economic growth itself has many important roles, including increasing FDI or Foreign Direct Investment and Taxes which are useful for economic stability.
This study examines inflation, consumption, and economic growth before COVID-19 to see a causal relationship between inflation, consumption, and economic growth in Indonesia so as to provide an overview of the economic impact of post-covid-19 inflation. This research examines data from 2000 until 2020 to be able to produce "autoregressive vectors" that may be used to evaluate the causal link between variables. Based on secondary data from the World Bank, the following multivariate regression model was used to investigate the causal link between Inflation, Gross Domestic Product, and Consumption expenditure in Indonesia. We found that inflation has a significant impact on economic growth and the real sector in Indonesia. Indonesia with a large population contributes greatly to economic growth. The results of this study are quite surprising where inflation actually encourages economic growth and consumption in Indonesia. However, the results of this study need to be confirmed regarding people's purchasing power during the research period. From the period 2000 to 2020, Indonesia has escaped the 1997 Asian crisis so Indonesia's economy is quite stable during the study period. And in 2020 when covid 19 began to spread in Indonesia, online-based purchases supported Indonesian consumption, so inflation during this research period actually boosted economic growth and consumption in Indonesia.
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