EFFECTS OF IMPORTS OF MAIN AND PROCESSED RAW MATERIALS FOR THE FOODS AND BEVERAGES INDUSTRY ON ECONOMIC GROWTH IN INDONESIA

Lusi Dyana Hasra (Faculty of Economics and Business, Malikussaleh University)
Cut Putri Mellita Sari (Faculty of Economics and Business, Malikussaleh University)

Journal of Malikussaleh Public Economics
Vol 2, No 1 (2019): JOURNAL OF MALIKUSSALEH PUBLIC ECONOMICS

The purpose of this study is to analyze the relationship between Imports of Main Raw Materials and Processed Materials for Industry to Indonesian Economic Growth. This study uses secondary data in the year 1997-2015 obtained from BPS (Central Bureau of Statistics) Indonesia. Data are analyzed using Vector Autoregression (VAR) with Impulse Response Function (IRF) and Forecast Error Variance Decomposition (FEVD). The results of the study indicated that there were Co-interrelations of each variable to the variable itself and other variables. Variable Imports of Primary Raw Materials had the most effective effect in the short run on Economic Growth, while the variable Imports of Processed Raw Materials had the most effective effect in the long run on Economic Growth.