International Journal of Economics, Business and Innovation Research
Vol. 3 No. 05 (2024): International Journal of Economics, Business and Innovation Research (IJEBIR)

Analysis of the effect of economic integration on the increase of gross domestic product in ASEAN countries

Ade Darmawan (Unknown)
Marselina, Marselina (Unknown)



Article Info

Publish Date
25 Sep 2024

Abstract

This study aims to explore the impact of the implementation of the ASEAN Economic Community (AEC) on the increase of Gross Domestic Product (GDP) in ASEAN member countries. The main focus of this study is on key variables including foreign direct investment, import-export ratio, labor productivity, and government debt. The AEC, which came into effect at the end of 2015, is expected to strengthen economic integration in the region by facilitating the flow of goods, services, and investment. The method used in this study is regression analysis to identify the relationship between these variables and GDP during the post-MEA period (2016-2022). The results of the analysis show that foreign direct investment and labor productivity have a significant positive influence on the increase of GDP in ASEAN countries. On the other hand, the import-export ratio shows a negative impact that needs to be watched closely, while government debt does not show a significant effect in this context. The findings provide important insights for policymakers in formulating more effective economic strategies to maximize the benefits of the AEC, as well as addressing the challenges posed by instability in trade ratios and debt management.

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Journal Info

Abbrev

IJEBIR

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Economics, Business and Innovation Research (IJEBIR) is a high quality open access peer reviewed research journal. providing a platform for the researchers, academicians, professional, practitioners and students to impart and share knowledge in the form of high quality ...