Bilateral economic cooperation between Indonesia and Australia through trade and investment provides opportunities to promote Indonesia's economic growth. However, increased trade and investment activities are not always accompanied by positive effects on the domestic economy. This study analyzes the relationship between Australian investment, exports, and imports and Indonesia's economic growth over the period 2010–2024 using the Vector Error Correction Model (VECM). The results show that, in the long run, Australian investment and Indonesian exports have a negative and statistically significant effect on economic growth, while imports have a positive but statistically insignificant effect. Meanwhile, in the short run, an interaction between exports and investment is identified.
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