Analysis of Economic Openness, Foreign Direct Investment, and Labor Force on Economic Growth: A Case Study of G20 Member Countries

Aryani, Frisca Ayudya
Susilowati, Dwi

Jurnal Ilmu Ekonomi
Vol. 10 No. 02 (2026): Jurnal Ilmu Ekonomi

The purpose of this study is to analyze the effect of trade openness, foreign direct investment (FDI), and labor on economic growth in G20 countries during the period 1995-2024. This study uses a quantitative approach with panel data regression analysis. The best model is the fixed effect model (FEM). The results show that all three variables simultaneously have a significant effect on economic growth in G20 countries. Partially, the variables of trade openness and labor have a positive and significant effect. Meanwhile, the FDI variable has a negative and significant effect on economic growth. The results of this study emphasizes the importance of a country engaging in international trade, implementing policies that encourage foreign investment, providing employment opportunities, and having a skilled workforce.