The Impact of Remittance toward Indonesia’s Economic Growth

Nur Siti Annazah (Kementerian Ketenagakerjaan Republik Indonesia, Jakarta, Indonesia)
Ivan Suryono (Kementerian Ketenagakerjaan Republik Indonesia, Jakarta, Indonesia)

Nusantara Science and Technology Proceedings
1st ICEMAC 2020: International Conference on Economics, Management, and Accounting

This paper aims to find out external factor toward long-term economic growth. Variable used are remittance, PMTB, import and economic growth obtained from World Development Indicator (WDI) in period of 1988-2018. Regression analysis of ARDL Cointegration is utilized in finding out remittance, PMTB and import toward economic growth both for short-term and long-term. The result of analysis shows that remittance affects toward long-term economic growth. PMTB variable can increase economic growth both for short-term and long-term. Import variable can increase economic growth in short-term, but it decreases economic growth in long-term. The result shows that external factors need to be paid attention more by government because it can contribute toward national economic growth