Journal of Indonesian Applied Economics
Vol. 13 No. 1 (2025): February - June 2025

PUSH FACTOR AND PULL FACTOR ANALYSIS ON ECONOMIC GROWTH THROUGH CAPITAL FLOWS IN INDONESIA

Aprella, Revi (Unknown)
Endang NP, Maria Goretti Wi (Unknown)
Darmawan, Ari (Unknown)



Article Info

Publish Date
20 May 2025

Abstract

Purpose The purpose of this research is to find out how domestic conditions (pull) and external conditions, especially the economic conditions of the United States (push factor) towards capital flows, where the increasing in capital will affect economic growth in Indonesia. Design/methodology/approach The method used in this study is PLS (Partial Least Square) using WarpPLS. The study used 4 (four) variables: push factor, pull factor, capital flow and economic growth. This research is an explanatory research with a quantitative descriptive approach. The data source for this research comes from World Bank, Federal Reserve, IMF. Findings The results show a significant negative relationship between push factors and both capital flows and economic growth, as well as between pull factors and economic growth.. There is a negative statistically insignificant relationship between pull factors and capital flows, and between capital flows and economic growth. Capital flows are not able to mediate the push effect factors on economic growth and the pull effect factors on economic growth. Research limitations/implications This study has several limitations such as limited data and the research was only conducted in Indonesia which may limit generalizability to other countries or regions. Originality/value This study offers a comprehensive understanding of the influence of push and pull factors on economic growth via capital flows in Indonesia, which may support the formulation of macroeconomic policy.

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Journal Info

Abbrev

jiae

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and ...