I-Finance Journal
Vol 11 No 1 (2025): I-FINANCE: a Research Journal on Islamic Finance

DETERMINANTS OF ECONOMIC GROWTH IN INDONESIA FROM AN ISLAMIC ECONOMICS PERSPECTIVE

Amelia Sholeha (Universitas Islam Negeri Raden Intan Lampung)
Liya Ermawati (Universitas Islam Negeri Raden Intan Lampung)
Sania Nuraziza (Universitas Islam Negeri Raden Intan Lampung)



Article Info

Publish Date
30 Jun 2025

Abstract

This study aims to analyze the determinants of economic growth factors in Indonesia in the perspective of Islamic economics, especially the influence of Foreign Direct Investment (FDI), Domestic Direct Investment (DDI), exports, imports, and inflation in the period 2015-2023. The research population is Indonesian macroeconomic data, with a sample of time series data for the period 2015-2023. The data analysis technique uses a quantitative approach through the Vector Error Correction Model (VECM) model to test the relationship between short-term and long-term variables. The results showed that FDI had no effect on economic growth, PMDN had no significant effect on economic growth, as well as exports t-statistic <1.9677. In contrast, imports have a positive effect in the long run, while inflation has a significant effect in both the short and long term. In the perspective of Islamic economics, the principles of fairness, balance, and sustainability are essential to ensure inclusive and welfare-oriented economic growth. In conclusion, FDI, PMDN, Export has no influence on economic growth, while Import has an influence in the long run and Inflation has an influence on economic growth in 34 provinces in Indonesia during the period 2015-2023

Copyrights © 2025






Journal Info

Abbrev

I-Finance

Publisher

Subject

Economics, Econometrics & Finance

Description

I-Finance: a Research Journal on Islamic Finance is a peer-reviewed journal on Islamic ...