Economica: Jurnal Ekonomi Islam
Vol. 15 No. 2 (2024)

The Impact of Foreign Debt on Economic Growth: An Analysis from Jasser Auda's Maqashid al-Shariah Perspective

Wardhani, Jayanti Sukma (Unknown)
Fadhillah, Anessa (Unknown)



Article Info

Publish Date
10 Nov 2024

Abstract

This study aims to analyze the impact of foreign debt on economic growth from the perspective of Jasser Auda’s Maqashid al-Syariah framework. The research adopts a quantitative approach, utilizing secondary time-series data spanning 11 years (2010–2021), sourced from the Central Government's Ministry of Finance Foreign Debt Statistics Report and the Ministry of Trade’s GDP Report. The analysis methods applied include the Vector Autoregression (VAR) technique, variance decomposition analysis, and Granger Causality test, all conducted via E-Views 10. This study employs a purposefulness and openness approach to examine the unidirectional relationship between foreign debt and economic growth. Results reveal a long-term unidirectional relationship between economic growth variables and foreign debt, evidenced by an F-statistic probability exceeding the 5% threshold (>0.05). This indicates that increased economic growth in a country is partly driven by foreign debt.

Copyrights © 2024






Journal Info

Abbrev

economica

Publisher

Subject

Economics, Econometrics & Finance Social Sciences Other

Description

EEconomica: Jurnal Ekonomi Islam is a scientific journal in the field of Islamic economics studies published twice a year by the Institute of Islamic Economic Research and Development (LP2EI), Faculty of Islamic Economics and Business UIN Walisongo Semarang. The editors receive scientific ...