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Journal : Economics Development Analysis Journal

International Trade Activities as Drivers of Economic Growth: Macro Conditions Goestjahjanti, Francisca Sestri; Novitasari, Dewiana; Rahmawati
Economics Development Analysis Journal Vol. 13 No. 3 (2024): Economics Development Analysis Journal
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v13i3.4114

Abstract

Global economic growth has hovered around 2-3% over the past decade, resulting in stagnant GDP growth for Indonesia at approximately 5%. This research aims to analyze the effects of macroeconomic conditions, specifically money supply (M2), foreign debt, and international trade activities, on Indonesia's GDP growth from 1994 to 2023. Utilizing a linear regression method with 30 observations, the study finds significant impacts of the independent variables on GDP growth. M2 influences GDP growth by 93%, foreign debt by 76.6%, and net exports by 92.3%. Simultaneously, changes in these variables explain 93.7% of the variation in Indonesia's GDP. The theoretical foundation of this research is built upon previous studies on economic growth and macroeconomic factors, emphasizing the role of monetary policy, debt management, and export diversification. The findings indicate that the careful management of M2 is critical to fostering investment and consumption, while excessive reliance on foreign debt may hamper long-term growth. Non-oil and gas exports significantly contribute to GDP, underscoring the importance of export diversification. The study concludes that these macroeconomic factors are vital for sustainable economic growth and improving welfare in Indonesia, and recommends policy interventions to optimize their effects.
Co-Authors Abadiyah, Siti Adi Widodo Adiyanto Admiral Agung Ali Fikri, Muhamad Agus Purwanto AGUS PURWANTO Ahmad Fauji, Ahmad Aminiar, Cica Amiruddin, Ja'far Amri, Whan Augustin Ainul Aniyah Apriliasari, Dwi Asbari, Masduki Bambang Tri Cahyono Basuki, Sucipto Bist, Ankur Singh Chidir, Gusli Choirida Fahmalatif, Farida Fikri, Muhamad Agung Ali Gazali Gazali . Gazali Gazali Goestjahjanti, Francisca Sestri Goestjahjanti, Fransisca Sestri Gunawan Santoso Haq, Saiful Haque, Marissa GraceHaque Hasna, Shofwatun Hatta, Nadisya Rachelia Hidayati, Laily Hidayati Hutagalung, Dhaniel Indradewa, Rhian Istajib Kulla Himmy’azz JAINURI, JAINURI Joni Iskandar, Joni Juliana Juliana Juliana, Juliana Jumiran, Jumiran Karnawi Kamar, Karnawi Khaerul Fahmi Kumoro, Dwi Ferdiyatmoko Cahya Lestari, Bela Lumbantoruan, Jitu Halomoan Muliati, Lisdewi Nadeak, Multi Napitupulu, Bonar Bangun Jeppri Naurah, Syahla Nazelina, Meisya Nugroho, Yunianto Agung Nurasiah Nurasiah Nuryanti, Yulis Pebrina, Erni Taruli Pramono, Tias Purnawan, Julius Putra, Arman Syah Putra, Firdaus Qurotul Aini Radita, Fatrilia Rasyi Rahman, Yuniar Rahmawati Rahmawati, Aprilia Ramadhan, Rikky Erlangga Ristiani, Dewi Rosdiana, Dina Samsudin Santoso, Priyono Budi Sasono, Ipang Silitonga, Nelson Simorangkir, Yosua Novembrianto Siswanto, Edy Soemadi, Rd Roro Anggraini Srinita, Srinita Sudargini, Yuli Sukriyah Sukriyah, Sukriyah Sunarjo, Richard Andre Supriatna, Heri Supriyanto Susanto, Renaldy Sutardi, Didi Suwandy, Safna Deviputri Temmy Setiawan, Temmy Utami, Heryanti Waruwu, Hatoli Wihardjo, Mikael Tjokro WINANTI, WINANTI Wiratama, Jansen Young, Felina Co Yuhelmis