This study aims to analyze the influence of inflation, exports, imports, exchange rates, and foreign direct investment (FDI) that are estimated to have an effect on German economic growth between 1990-2022. To analyze the relationship between these variables, this study was conducted using time series data from the World Bank and the Error Correction Methodology (ECM), a quantitative approach used in this study. The data processing process from the World Bank uses the Eviews13 software. Based on the findings, export variables significantly and positively affect economic growth in the short term, while factors of imports, inflation, and foreign direct investment significantly and negatively affect economic growth in the long term. Although the exchange rate does not have a statistically significant impact, the exchange rate remains important when it comes to foreign investment and trade. The model used meets classical assumption tests, including normality tests, the absence of autocorrelation and heteroscedasticity, and the absence of multicollinearity in most variables.
Copyrights © 2025