EFFECT OF EXPORT IMPORT AND INVESTMENT ON ECONOMIC GROWTH IN INDONESIA (VECM ANALYSIS METHOD)

Hijri Juliansyah (Fakultas Ekonomi dan Bisnis Universitas Malikussaleh)
Yudha Ganesha (Fakultas Ekonomi dan Bisnis Universitas Malikussaleh)
Ichsan Ichsan (Fakultas Ekonomi dan Bisnis Universitas Malikussaleh)
Fanny Nailufar (Fakultas Ekonomi dan Bisnis Universitas Malikussaleh)
Sari Yulis Terfiadi (Fakultas Ekonomi dan Bisnis Universitas Malikussaleh)

Journal of Malikussaleh Public Economics
Vol 5, No 1 (2022): JOURNAL OF MALIKUSSALEH PUBLIC ECONOMICS

This study aims to know the effect of export, import and investment on economic growth in Indonesia. This study employis secondary data in the period 1967-2020 obrained from the World Bank. The data is analyzed by using Vector Error Correction Method (VECM). All tests used in this study are unit root test, lag length criterion test, cointegration test, Granger causality test and VAR stability test. The results showed that the export and import of Indonesia have a positive and insignificant effect on Indonesia economic growth both in short run and long run. Investment has a negative and insignificant effect on economic growth both in short run and long run in Indonesia.