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Analysis of International Trade in Promoting Indonesia's Economic Growth Period 1975-2018
Analysis of International Trade in Promoting Indonesia's Economic Growth Period 1975-2018
Publisher : PJPCR
Author(s)
Sofia M.
Abstract
The welfare of the population in Indonesia can be measured through the level of economic growth (GDP). This study examines how the influence of exchange rates, world oil prices, China's economic growth, American economic growth, and foreign investment affect the level of economic growth in Indonesia through agricultural exports, industrial exports, and imports. Using annual time series data from 1975 to 2018 and simultaneous regression analysis with E-views 8, the results indicate that all variables have a significant effect on Indonesia's economic growth except American economic growth. The findings suggest that policies should stabilize the rupiah exchange rate, encourage investment, and facilitate international trade to increase Indonesia's economic growth.