The Impact of Domestic Investment, Foreign Investments, HDI, Export, and Import on the Economic Growth in Indonesia

Abstract

The aims of this study were to examine the causal relationship between domestic investment, foreign, Export, Import, HDI and their impact on Indonesia's economic growth measure with GDP. The data used was panel data from 18 provinces in 2016-2020 which was taken based on stratified random sampling. The model used to complete the purpose of this research was panel data regression. The results of the analysis show economic growth based on the value of GDP in each province tends to decline. Modelling of economic growth in Indonesia was used Panel Data Regression. In this research, Hausman Test is used to obtain the best model of panel data regression because the model contain of Random Effect Model. Based on Simultaneous test results obtained at least one significant variable to the model and based on partial test the GDP was significantly influenced by the variables of FDI, DDI, HDI and Import sectoral value. Variable Export has an effect on GDP but is not significant where R² shows the results of 98.9%