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HOW FDI, EXPORT AND PRODUCTIVE-AGE POPULATION INFLUENCE GRDP: INSIGHTS FROM INDONESIA'S ECONOMIC DATA


Author: Septriani Septriani*
Department of Economic Development, Faculty of Economics and Business, University of Bengkulu, Bengkulu, Indonesia.
Published Date: 2024-12-30
Keywords: GRDP, foreign direct investment, export, productive-age population.
Abstract:
This study aims to analyze the influence of international trade on Indonesia's economic growth. The data used is secondary data sourced from the Central Bureau of Statistics and the World Bank. Furthermore, the analysis tool used in this study is multiple linear regressions using time series data during the period 1993-2022. Based on the regression results, the results were obtained that partially the foreign direct investment and export variables had no effect on Indonesia's GDP, while the productive-age population variable had a positive and significant effect on Indonesia's GDP. Meanwhile, simultaneously the variables of foreign direct investment, exports, and productive-age population have a positive effect on Indonesia's GDP. The implications of this research are the need to increase the added value of exports by developing the manufacturing sector and downstream industries and FDI management must be focused on the industrial and service sectors that have a direct impact on economic growth. In addition, it is necessary to diversify the economy. This is because dependence on primary commodities hinders sustainable economic growth. Furthermore, it is necessary to strengthen human resources and skills, because improving the quality of the workforce will increase productivity and encourage economic growth.