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The Relationship Between Granger Causality Analysis and Indonesian Trade and Economic Growth. Yuliansyah, Yuliansyah; Gunarto, Toto; Ciptawaty, Ukhti; Ninidien, Qurrota Ayu; Afif, Fadeli Yusuf
Jurnal Ekonomi Pembangunan Vol 14 No 3 (2025): Volume 14 Nomor 3 Tahun 2025
Publisher : Fakultas Ekonomi dan Bisnis Universitas Lampung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23960/jep.v14i3.4433

Abstract

These findings confirm that the contribution of domestic assets to economic growth is relatively limited, which is in line with the literature that emphasizes the more dominant role of foreign direct investment, household consumption, and fiscal and monetary policies in influencing the Indonesian economy. Second, the causality test on foreign assets also shows similar results, namely that economic growth has not been proven to affect changes in foreign assets, and vice versa. Based on the findings of this study, the recommendation for the government is to implement economic development policies that are more focused on strengthening the domestic foundation, particularly by encouraging productive investment, increasing the competitiveness of the real sector, and strengthening household consumption, which has been proven to be more significant in driving economic growth
The impact of the quality of democracy on the economic growth of provinces in Indonesia Nairobi Nairobi; Nur Rita Santi; Fadeli Yusuf Afif
Journal of Governance and Accountability Studies Vol. 1 No. 2 (2021): July
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/jgas.v1i2.626

Abstract

Purpose: The impact of democracy on economic growth is an interesting study of economic institutions and there is still debate about the impact on economic growth. One side of the research finds that democracy has a significant and positive impact on economic growth, but the other side states that the improvement of the country's democracy causes economic growth to decline. This study aims to examine the impact of the quality of democracy on economic growth at the provincial level in Indonesia. Research methodology: The data used in this study use panel data using the Eviews 9.0 analysis tool, so that the best method named the Random Effect Model is obtained. Result: The results show that democracy in Indonesia has a significant impact on economic growth and there is a positive trend in the long run. Other variables used are labor and foreign investment, which statistically, if these variables occur, can increase economic growth in Indonesia and increase employment and data on foreign investment play a role in driving economic growth. Economic growth in Indonesia is already in good condition and the economic growth that occurs is convergence growth which shows that some provinces that are poor/underdeveloped can catch up with developed provinces. Limitations: This study uses fairly short time-series data, so that the addition of a longer time-series will of course give better results. Contribution: Improvements in democracy in Indonesia should also strengthen democratic norms that apply in society, such as reducing corrupt behaviors, especially political corruption and money politics to get public office because if this behavior cannot be corrected, then democracy will have little impact on the economy.