Analysis of the Effect of Interest Rates, Exchange Rate Inflation and Foreign Investment (PMA) on Economic Growth in Indonesia in 1986-2020

DOI

10.2991/aebmr.k.220602.041How to use a DOI?

Keywords

Economic Growth; Foreign Investment; Interest Rate; Indonesia; Multiple Regression

Abstract

This study aims to examine several factors influencing economic growth. The independent variables in this study encompass several macroeconomic variables of interest rates, inflation, exchange rates, and foreign investment. This study employed the Ordinary Least Square (OLS) approach to analyze time-series data during 1986-2020, and the estimation steps comprised classical assumption, model goodness, and regression coefficient tests. The study results revealed that the variables of interest rates, inflation, exchange rates had a negative and significant effect on economic growth in Indonesia. However, foreign investment did not affect economic growth.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Wuri Nur Indah Sari
AU  - Eni Setyowati
AU  - Sherlyna Mandassari Putri
AU  - Sitti Retno Faridatussalam
PY  - 2022
DA  - 2022/06/13
TI  - Analysis of the Effect of Interest Rates, Exchange Rate Inflation and Foreign Investment (PMA) on Economic Growth in Indonesia in 1986-2020
BT  - Proceedings of the International Conference on Economics and Business Studies (ICOEBS 2022)
PB  - Atlantis Press
SP  - 313
EP  - 320
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220602.041
DO  - 10.2991/aebmr.k.220602.041
ID  - Sari2022
ER  -