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Journal : Majority Science Journal

The Effect of Capital Market and Public Savings on Indonesia's Economic Growth Binanga, Angga; Apridar; Seftarita, Chenny
MSJ : Majority Science Journal Vol. 2 No. 4 (2024): MSJ-November
Publisher : PT. Hafasy Dwi Nawasena

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61942/msj.v2i4.241

Abstract

This study analyzes the impact of the capital market and public savings on economic growth in Indonesia using panel data from 34 provinces over the period 2016 to 2022. It aims to address the gaps in previous research, which showed inconsistent results regarding the effect of real sector investment on economic growth. Through multiple linear regression, this study finds that the capital market and public savings have a positive and significant influence on economic growth. These findings suggest that increasing capital accumulation in the capital market and public savings in banks can be an effective strategy to stimulate economic growth. The best model used in this study is the Fixed Effect Model, selected based on the Chow and Hausman tests. The coefficient of determination indicates that the capital market and public savings variables can explain the variation in economic growth significantly. This study contributes new insights by using data on domestic investor assets at the provincial level and offers policy recommendations to enhance public participation in the capital market and banking sector. The limitations of this study lie in the data coverage, which is restricted to Indonesia and spans a seven-year period, thus caution is needed when generalizing the findings to other countries or longer timeframes. Future research is encouraged to include additional variables and expand the geographical and temporal scope of the analysis.
Co-Authors Abd Jamal Abd Jamal Abd. Jamal Achmad Noerkhaerin Putra Ade Habya Fijay Ade Irma Suryani Aliasuddin Andri Andri Annisa Lati Polia Apridar Apridar Apridar Azra, Uliya Azuddin Yakob, Noor Bambang Bambang Binanga, Angga Bunsit, Thanawit BZ, Fazli Syam C. Dawood, Taufiq Cut Dara Fitriani Cut Idi Keumala Dewi Cut Miranda Pusra Dara Mutia Fikhriani Derry Fahrian Desi Novita Sari Dewi Ayu Muliani Diana, Asri Eli Marnia Henira Evi Mutia Fadliansah, Oka Fakhruddin Fakhruddin Farid Farid, Farid Ferayanti Ferayanti Ferayanti Ferayanti Ferayanti Ferayanti, Ferayanti Fijay, Ade Habya Fitrah Afandi Fitriyani Fitriyani Fitriyani Geubrina, Yulia Hadi Arisyah Putra Haifa Sari Halimatussakdiah Halimatussakdiah Indra Maipita Iskandarsyah Madjid, Iskandarsyah Jhon Andra Asmara Juaris Juaris Jul Fahmi Salim Litbang Bappeda M. Shabri Abd Majid Madiyoh, Abdulhakim Masro Fitri Ana Harahap Mikhral Rinaldi Mirza Winanda Mona Zahara Muhammad Fadhil Muhammad Nasir Muhammad Zul Mausir Muliza Muliza, Muliza Munawir Munawir Mustakim Mustakim Muti'ah Muti'ah Nazamuddin Nazamuddin Nita Faiziah Nizam, Ahmad Nurmaya Sari Nurul Putri Qadhri Putra, Hadi Arisyah Putri Kemala Sari Rahmad Rahmad Rahmat Fajri Raja Masbar Ratna Mulyany, Ratna Reovasimulo Anakusara Ringga, Edi Saputra Royanti, Mella Rudi Hermanto Said Musnadi Silvia, Vivi Siska Azkia Sitepu, Novi Indriyani Sofyan Syahnur Sofyan Syahnur Srinita Srinita Srinita, Srinita Suriani Suriani Suriani Suriani Suwaibah Suwaibah Syarifah Annisa T. Zulham Talbani Farlian Taufiq Carnegie Dawood Thahira, Zia Varlitya, Cut Risya Vivi Silvia Wintara, Heri Yahya Yahya Yassir Achmad Zikra, Naswatun